By Glen Hallick, MarketsFarm
WINNIPEG, May 15 (MarketsFarm) – Intercontinental Exchange futures canola contracts were off to another strong start in early trade Wednesday morning, due to spillover from the Chicago Board of Trade soy complex.
The July canola contract was up C$3.70 at C$446.00 per tonne. The November contract gained C$4.50 at C$458.20 per tonne.
Short covering, the below average pace of planting in the United States and wet conditions in that country’s Midwest have been supportive of the bounce in prices.
Concerns of dry conditions in some parts of Western Canada, limited farmer selling of canola and the technical bias having shifted to the upside have been supportive of canola bids.
However, canola being more expensive than soybeans and limited export demand because of China’s ban on Canadian canola have been tempering gains.
The Canadian dollar Wednesday morning was about 74.15 U.S. cents, down from Tuesday’s close of 74.24.
About 3,900 canola contracts had traded as of 8:36 CDT.
Prices in Canadian dollars per metric ton at 8:36 CDT:
Canola Jul 446.00 up 3.70
Nov 458.20 up 4.50
Jan 464.30 up 4.50
Mar 470.20 up 4.60