By Dave Sims, Commodity News Service Canada
WINNIPEG, June 23 – Canola contracts on the ICE Futures Canada platform were mostly higher Monday morning, following the soy complex as well as enjoying a corrective bounce. Spillover buying from palm oil, European rapeseed and soyoil acted to support prices.
Violence in Iraq continues to encourage buying as speculation builds on whether or not the world’s supply of oil will be disrupted. Excess moisture in Manitoba and Saskatchewan also lent support, said analysts.
Palm oil is rising due to the recent hike in crude oil prices.
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A lack of farmer selling was also supportive as sales of canola from farmers could be limited until closer to harvest time, according to a report.
With the exception of certain areas, most of the canola crop, as well as soy, is off to a good start, which tempered the advances.
The Canadian dollar is sitting above 93 US cents right now, casting a bearish influence over canola as well.
About 2,000 canola contracts had traded as of 8:40 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:40 CDT:
