By Dave Sims, Commodity News Service Canada
WINNIPEG, June 2 – ICE Canada canola contracts were higher Tuesday morning in sympathy with US soybeans and consolidating after yesterday’s sharp advances.
Malaysian palm oil and US soymeal were also stronger which supported canola.
Concerns over suspected frost damage in Saskatchewan and Manitoba underpinned the market, while reports of widespread dryness across much of the Prairies was supportive.
The Environmental Protection Agency’s proposal on Friday that higher limits of bio-diesel be introduced in the US was also bullish for vegetable oils including canola.
However, weakness in US soyoil and European rapeseed futures limited the gains.
The Canadian dollar was higher against its US counterpart which made canola less attractive to domestic crushers and exporters.
The next upside target for canola is C$500 per tonne, according to a report.
About 5,200 canola contracts had traded as of 8:40 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:40 CDT:
