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ICE canola continues to rally higher

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Published: June 25, 2015

By Phil Franz-Warkentin, Commodity News Service Canada

WINNIPEG, June 25 – Canola contracts on the ICE Futures Canada platform were stronger at midday Thursday, continuing their rally of the past week as persistent weather concerns in Western Canada and advances in CBOT soybeans provided support.
Forecasts calling for hot temperatures and little chance of moisture in the dry areas of Alberta and Saskatchewan over the next week accounted for much of the buying interest in canola. However, excessive moisture is starting to cause problems in Manitoba, and the heat will be welcomed there, said an analyst.

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Gains in CBOT soybeans provided spillover support for canola, with concerns mounting in the Midwest over unseeded acres and yield losses due to excess moisture.
A stronger tone in the Canadian dollar did serve to temper the upside potential in canola. Ideas that the market was starting to look overpriced compared to other oilseeds also tempered the advances, according to participants.
About 12,000 canola contracts had traded as of 10:56 CDT.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:56 CDT:

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