By Dave Sims, Commodity News Service Canada
WINNIPEG, June 25 – ICE Canada canola contracts were higher Thursday morning, as the most-active contracts rose in sympathy with the US soy complex while traders exited the front-month ahead of its expiry.
Malaysian palm oil was stronger which contributed to the gains.
Dry conditions across much of Western Canada continue to stress the canola crop raising concerns about yield loss.
Farmers are hanging onto their supplies right now as they try to get a clearer sense of how much canola they will have to move.
However, the Canadian dollar was higher against its US counterpart which made canola less attractive to out-of-country buyers.
Speculators have built a very large net long position, in excess of 40,000 contracts, and may be limited in future purchases, according to a trader.
About 5,300 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:
