By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 28 (MarketsFarm) – ICE Futures canola contracts were up sharply at midday Tuesday, hitting their best levels in a month as a rally in Chicago Board of Trade corn and soybeans provided support.
Weather concerns across the Midwest sparked the buying interest in the United States futures, with excessive moisture delaying corn and soybean seeding in the region.
Speculative short-covering added to the gains in canola, as some stops were hit on the way up.
Dryness concerns in parts of Western Canada were also supportive, according to a trader.
However, large old crop supplies and the ongoing trade dispute with China put some pressure on values, limiting the upside.
About 16,000 canola contracts traded as of 10:43 CDT.
Prices in Canadian dollars per metric tonne at 10:43 CDT:
Price Change
Canola Jul 451.30 up 5.50
Nov 464.40 up 5.50
Jan 468.90 up 5.00
Mar 473.20 up 4.60
