By Terryn Shiells, Commodity News Service Canada
Winnipeg, July 16 – Canola contracts on the ICE Futures Canada platform were higher Wednesday morning, taking some direction from the gains seen in Chicago soybean and soyoil futures.
Some of the strength was also linked to the downswing in the value of the Canadian dollar, which dropped below 93 cents US. The weaker Canadian currency makes canola more attractive to crushers and exporters.
Slow farmer selling, as they remain reluctant to sell old crop supplies until they’re more sure of their new crop, was also bullish, analysts said.
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Ongoing worries about floods washing out canola fields in parts of Manitoba and Saskatchewan, and dryness in parts of Alberta remained supportive overall, though supplies of the crop are still expected to be large.
A bearish technical bias and continued good weather for an expected very large US soybean crop helped to limit the advances.
As of 8:47 CDT Wednesday, about 2,200 contracts had traded.
Milling wheat, durum and barley futures were untraded following price revisions to wheat after Tuesday’s close.
Prices in Canadian dollars per metric ton at 8:47 CDT:
