By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 28 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Friday, as concerns over hot and dry conditions in parts of Western Canada provided support.
Heat warnings from Environment Canada remain in effect across much of the southern growing regions of Saskatchewan and Alberta, raising concerns over additional yield losses in the already dry areas.
Chart-based speculative buying added to the firmer tone in canola, as the nearby technical signals have shifted higher following the bounce off of nearby lows earlier in the week.
Gains in Chicago Board of Trade soybeans and soyoil were also supportive for canola.
However, a sharply stronger tone in the Canadian dollar tempered the advances. The currency was up by more than three-quarters of a cent relative to its US counterpart, trading at about 80.50 US cents. That cuts into crush margins and makes exports less attractive to international buyers.
About 5,100 canola contracts had traded as of 10:44 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
