By Glen Hallick, MarketsFarm
WINNIPEG, May 28 (MarketsFarm) – Intercontinental Exchange (ICE) futures canola contracts were stronger in early trade Tuesday morning, due to spillover from commodity prices on the Chicago Board of Trade.
The July canola contract jumped C$4.50 to C$450.30 per tonne. The November contract leapt C$5.10 to C$463.50 per tonne.
The slow pace of planting in the United States due to wet conditions has resulted in higher corn and soybean prices, which in turn is providing support for canola bids.
Also, canola could break out of its sideways trading range to the upside.
The Canada/China dispute and the likelihood of more soybean acres being planted in the U.S. are tempering gains.
The Canadian dollar was lower Tuesday morning at about 74.26 U.S. cents, compared to Monday’s close of 74.39.
About 4,600 canola contracts had traded as of 8:35 CDT.
Prices in Canadian dollars per metric ton at 8:35 CDT:
Price Change
Canola Jul 450.30 up 4.50
Nov 463.50 up 5.10
Jan 468.40 up 4.50
Mar 472.80 up 4.20
