By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 8 (MarketsFarm) – The ICE Futures canola market was stronger at midday Monday, as a rally in Chicago Board of Trade soyoil and ongoing concerns over tight Canadian canola supplies provided support.
Adverse weather in South America accounted for some of the strength in soybeans that spilled into the canola market. Dry conditions in parts of Western Canada ahead of spring seeding were also being followed by market participants.
The most active May contract briefly touched the psychological C$800 per tonne level in overnight activity, but ran into resistance at the highs.
Cash bids were reportedly hitting record high levels in Western Canada, which should be encouraging farmer sales.
The Canadian dollar was holding steady at midday, providing little direction.
About 11,700 canola contracts traded as of 10:40 CST.
Prices in Canadian dollars per metric tonne at 10:40 CST:
Canola May 792.50 up 6.70
Jul 751.40 up 5.80
Nov 621.20 up 1.90
Jan 626.00 up 3.90