By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, June 19 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Monday, in choppy two-sided trade.
The July/November spread accounted for a large portion of the volume as traders rolled positions out of the front month.
In outright activity, a firmer tone in the Chicago Board of Trade soy complex provided some underlying support for canola, according to participants. Persistent weather concerns in parts of Western Canada, including dryness in areas of Saskatchewan and excessive moisture in parts of Alberta, contributed to the gains.
Solid end user demand and a lack of significant farmer selling also provided support. However, a trader said the old crop July contract was nearing levels that should bring in more producer sales, limiting the advances.
Continued strength in the Canadian dollar also put some pressure on values.
About 9,500 canola contracts had traded as of 10:46 CDT, with the July/November spread accounting for roughly half of that total.
Milling wheat, durum, and barley futures were all untraded and unchanged.