By Dave Sims, Commodity News Service Canada
WINNIPEG, July 6 – Canola contracts on the ICE Futures Canada platform were stronger at 10:35 CDT on Thursday, as hot and dry weather continues to linger in Western Canada. Participants fear the heat blast could damage the flowering canola crop.
Gains in Malaysian palm oil were supportive for canola.
“There’s also some spec buying, maybe some technical buying too as this thing drives higher,” said a Winnipeg-based trader.
Short-covering was also a feature, he added, as farmers bought back hedges.
However, weakness in the US soy complex limited the gains.
The Canadian dollar was slightly higher which weighed on canola prices.
Exports are slow right now, said the trader.
About 12,000 canola contracts had traded as of 10:35 CDT.
Milling wheat, barley and durum were all untraded.
Prices in Canadian dollars per metric ton at 10:35 CDT:
