By Jade Markus, Commodity News Service Canada
WINNIPEG, July 13 – ICE Canada canola contracts were stronger at midday on Wednesday, following advances in Chicago Board of Trade soybeans, as traders both sides of the border watch the weather.
Warmer temperatures have been projected for growing regions in the US, which propped up soybeans, and caused spillover support to canola.
“That heat is building next week, and then in the extended forecast, so that’s got markets fired up,” said one Winnipeg-based analyst.
In Canada, heavy rains have taken a toll on some crops in Saskatchewan and Manitoba, leaving fields with pools of water, though generally crop conditions are good.
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“I think that uncertainty is helping us here,” the trader said.
Malaysian palm oil closed stronger overnight, which further supported prices.
The Canadian dollar was weaker against its US counterpart in early activity on Wednesday, but an announcement from the Bank of Canada perked the loonie up, which chipped away at some of canola’s gains.
Despite a weaker growth outlook, the Bank of Canada had a mostly favourable view on Canada’s economic recovery.
“But crude oil is falling apart, so that may pull the Canadian dollar right back down, so we’ll see,” the trader said.
About 15,115 contracts had traded as of 10:35 CDT.
Milling wheat, durum and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
