By Glen Hallick, MarketsFarm
WINNIPEG, June 6 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Thursday, showing approximately C$1 to C$2 of independent strength, according to a Winnipeg-based trader.
The main reason for the bounce has been the weather forecast, he said. While Alberta has been getting rain today, the forecast for Saskatchewan was revised to light showers at best. Manitoba was expected to some rain as well.
What is very critical is the forecast of rain over the next three to four days.
“If we don’t get rain in some parts of the Prairies this weekend, and it looks dry thereafter, some of the canola crops are in real trouble,” the trader commented, noting the markets could become more nervous about canola.
Additional support for canola bids was coming from increases in the price of soyoil on the Chicago Board of Trade, he said.
Approximately 9,600 canola contracts were traded as of 10:20 CDT.
Prices in Canadian dollars per metric tonne at 10:20 CDT:
Price Change
Canola Jul 453.80 up 3.60
Nov 466.30 up 3.40
Jan 473.10 up 4.10
Mar 478.70 up 4.30
