By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, June 1 – Canola contracts on the ICE Futures Canada platform were up sharply at midday Monday, as gains in CBOT soyoil and concerns over a weekend frost in Western Canada helped boost the market.
Soyoil rallied sharply on Friday and remained pointed higher on Monday, as traders reacted to updated targets from the Environmental Protection Agency calling for more biodiesel usage in the US.
Adding to the strength in canola was a frost event that hit an estimated 10% of canola area across the Canadian Prairies over the weekend. While the extent of the damage is still being determined, early reports are pointing to an extensive need for reseeding.
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Speculative buy stops were hit on the way up, which added to the strength in canola, according to participants.
However, soybeans were slightly weaker and the great US production prospects did serve to temper the upside potential in canola.
About 36,000 canola contracts had traded as of 11:01 CDT.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 11:01 CDT:
