By Jade Markus, Commodity News Service Canada
WINNIPEG, June 7 – ICE Canada canola contracts were stronger at midday on Wednesday, underpinned by strength in the Chicago Board of Trade soybean market.
CBOT soybeans gained, as buying interest in that market continued, which had a spill-over effect on canola.
The Canadian dollar turned lower at midday, which also underpinned prices. A weaker loonie makes Canadian commodities more affordable for international buyers.
Canola was also gathering independent support as traders watch Western Canadian weather.
“After kind of a cool and wet spring, it’s a little warmer now,” said Ken Ball of PI Financial Corp. in Winnipeg.
“As soon as you utter the words ‘warm and dry’ the market tends to get a little edgy.”
Variability across the Prairies is also keeping the market supported, as traders suss out how much seeding has been finished.
Ball added that losses in the CBOT soy oil market subdued advances in canola.
About 7,958 contracts had traded as of 10:45 a.m. CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
