By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, May 14 (CNS Canada) – ICE Futures Canada canola contracts were stronger Monday morning, taking some direction from advances in the Chicago Board of Trade soy complex.
“There’s not much going on, but we have a nice bounce,” said a Winnipeg-based trader linking the strength in both soybeans and canola to speculative positioning and “spring nervousness.”
Mounting concerns over a lack of moisture in many regions of Western Canada were also supportive, with at least a third of the Prairies thought to be critically dry.
While there is some moisture in the forecasts for later this week, previous rains have consistently stopped at the Canada/U.S. border this year and canola traders will be following the weather closely.
About 6,000 canola contracts had traded as of 10:55 CDT.
