By Dave Sims, Commodity News Service Canada
WINNIPEG, June 1 – ICE Canada canola contracts were higher Monday morning as concerns mounted over weekend frost that occurred in parts of the Prairies. One expert said leaf damage was nearly certain but that it can take up to three to four days to know for sure. Many parts of Western Canada are also extremely dry which is causing additional concern.
Chicago soyoil was sharply higher which was supportive for canola values.
The Canadian dollar was lower against its American counterpart which made canola more attractive on the international marketplace.
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The EPA’s proposal on Friday that higher limits of bio-diesel be introduced in the US was also bullish for vegetable oils including canola.
However, there are ideas that canola is over-priced and due to hit some resistance from a chart standpoint. Profit-taking is also likely, according to an analyst.
World soy stocks are extremely large which capped the gains.
US soybeans and soymeal were lower which also dragged down values.
About 9,000 canola contracts had traded as of 8:45 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:45 CDT:
