By Glen Hallick, MarketsFarm
WINNIPEG, June 16 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were surging upward in very heavy trading at midday Friday. That’s due to growing concerns about dry crop conditions on the Canadian Prairies and the United States Corn Belt.
“The forecast is indicating drier that normal to the end of June,” an analyst commented.
Although the canola belt is said to be in fairly good condition, the analyst stressed the need for rain by the end of next week, especially for the eastern half of the Prairies.
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The dryness throughout much of North America pushed the Chicago soy complex skyward, with spillover flowing into canola. Also there were sharp gains in European rapeseed and Malaysian palm oil. Meanwhile, crude oil prices were up quite modestly, providing only a small measure of support to the vegetable oils.
Canola crush margins continued their upswing, with the nearby positions well exceeding C$200 per tonne above futures.
The Canadian Grain Commission reported producer deliveries of canola for the week ended June 11 remained stable from the week before at 257,900 tonnes. However, canola exports dropped to 38,800 tonnes and domestic usage slipped to 163,100 tonnes.
The Canadian dollar stronger on late Friday morning, as the loonie climbed to 75.81 U.S. cents compared Thursday’s close of 75.46.
Approximately 46,700 canola contracts were traded as of 10:24 CDT.
Prices in Canadian dollars per metric tonne at 10:24 CDT:
Price Change Canola Jul 746.30 up 31.20 Nov 721.10 up 28.10 Jan 730.50 up 30.00 Mar 732.70 up 25.40
