By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 6 (MarketsFarm) – The ICE Futures canola market was stronger at midday Monday, as weather concerns across North America provided support.
Chicago Board of Trade soybeans and soyoil were both posting solid gains on their first trading day back after the Independence Day long weekend, as hot and dry weather conditions across the Midwest sparked some buying interest.
Excessive moisture in parts of Western Canada, including hail and flood damage, added to the weather-related strength in canola as speculators covered short-positions, according to a trader.
However, chart-resistance was holding to the upside, with the November canola contract topping out at C$480 per tonne. A move above that level could spark additional fund short-covering.
About 9,600 canola contracts traded as of 10:51 CDT.
Prices in Canadian dollars per metric tonne at 10:51 CDT:
Canola Nov 479.70 up 4.80
Jan 485.90 up 4.80
Mar 490.70 up 5.00
May 495.40 up 5.30