By Terryn Shiells, Commodity News Service Canada
Winnipeg, June 19 – The ICE Futures Canada canola market was stronger at midday Friday, despite weakness in Chicago soybean futures, as weather worries for Canada’s canola crop kept values well supported, analysts said.
Recent frost and drought are likely to reduce 2015/16 Canadian canola production, and cold weather has slowed crop development in some regions. There is rain in the forecast for the dry regions of Alberta and Saskatchewan, but it won’t be enough to reverse the damage that has already been done.
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The downswing in the value of the Canadian dollar was also bullish, as it made canola more attractive to foreign buyers.
Though, canola is looking expensive relative to other commodities, which limited the upside, as it has brought crush margins down to lows that haven’t been seen in 10 years, brokers said.
The November canola contract was also running into resistance at the C$500 per tonne level.
As of 10:45 CDT Friday, about 14,950 contracts traded. Spreading was a feature of the activity.
Milling wheat and durum futures were untraded and unchanged. Some light activity was seen in the October barley contract, though the price was unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
