By Jade Markus, Commodity News Service Canada
WINNIPEG, July 14 – ICE Canada canola contracts were stronger, rebounding after sharp losses in earlier sessions.
“We rallied back here in the day session, our forecast is still looking hot and dry in Western Canada,” said one Winnipeg-based analyst.
“So that’s obviously the concerning factor there.”
He added that traders are reluctant to take positions into the weekend, due to speculation about how the weather will affect crops-resulting in low volumes on Friday.
Crop conditions in Saskatchewan are also keeping some support in the market.
“It’s certainly not fabulous, but not terrible either. There are many fields in Saskatchewan that are needing some rain and want some rain and just haven’t been lucky enough to get it,” the analyst said.
However, advances in the Canadian dollar is keeping a lid on canola’s strength, as it has the potential to cut into export demand.
Ideas that a large upcoming crop is looming also limited the market’s upside.
About 6,952 contracts had traded as of 11:00 a.m. CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric tonne at 11:00 a.m. CDT: