By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 18 (MarketsFarm) – The ICE Futures canola market was stronger at midday Tuesday, with the old crop July contract up its daily C$45 per tonne limit for the second session in a row.
After dropping sharply for most of the previous week due to long liquidation, the July contract was recovering its losses as traders on the short side were now covering those positions, according to a broker. The heavy buying interest kept any sellers on the sidelines, as they wait to see how high prices go.
In the new crop months attention is on the weather. Forecasts calling for much needed rain across dry regions of Western Canada put some pressure on values, but cold temperatures could also cause damage to early seeded fields.
The Chicago Board of Trade soy complex was mixed at midday, providing little direction for canola.
About 9,500 canola contracts traded as of 10:44 CDT.
Prices in Canadian dollars per metric tonne at 10:44 CDT:
Canola Jul 961.80 up 45.00
Nov 735.60 up 0.90
Jan 730.50 up 2.60
Mar 720.80 up 3.60