By Terryn Shiells, Commodity News Service Canada
Winnipeg, May 29 – The ICE Futures Canada canola market was stronger at midday Friday, with the July contract breaking above the key resistance level of C$470 per tonne.
Weakness in the Canadian dollar and a sharp rally in Chicago soyoil futures were supportive, as they made canola more attractive to crushers, analysts said.
Concerns about dryness negatively affecting canola crops in parts of Saskatchewan and Alberta added to the bullish tone, though rain is in the longer term forecast for some regions.
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Forecasts are calling for temperatures below freezing in parts of Manitoba Friday night, which could also cause damage to crops as many are at a vulnerable growth stage, traders said.
Spillover buying also came from the gains seen in Chicago soybeans.
However, the large global oilseed supply situation and sentiment that canola is looking expensive relative to other oilseeds limited the gains.
Generally good weather for US soybean crop planting and development was also overhanging the market.
As of 10:38 CDT Friday, about 16,350 contracts traded. Spreading was a feature of the activity.
Milling wheat, durum and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:38 CDT:
