By Phil Franz-Warkentin, Commodity News Service Canada
June 18, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:52 CDT Wednesday, with mounting weather concerns in parts of the Prairies behind some of the strength.
Heavy rains are in the forecasts for southern Alberta today, and that moisture is expected to move east over the next few days. There are concerns that the precipitation will cause flooding in some areas, and the weather worries were enough to trigger a short-covering bounce in canola, according to a broker.
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A lack of significant farmer selling contributed to the advances, as line companies are being forced to pay up to secure supplies, the broker added.
Gains in CBOT soyoil provided some spillover support for canola as well, although soybeans were mixed at midsession.
The large old crop canola supplies still overhanging the market did temper the advances to some extent.
About 11,000 canola contracts had traded as of 10:52 CDT. The July/November spread was a feature of the activity as participants continued to roll out of the front month.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:52 CDT:
