By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 18 (MarketsFarm) – ICE Futures canola contracts were trading to both sides of unchanged Tuesday morning, lacking any clear direction as the market consolidated after Monday’s gains.
Forecasts calling for some much needed rain in dry areas of Western Canada put some pressure on values. A firmer tone in the Canadian dollar and ongoing concerns over Chinese demand also weighed on prices.
However, more moisture will be needed in the dry Prairies, and traders were keeping a weather premium in the market.
Concerns over too much rain in the United States Midwest were also supportive, as soybean seeding continues to run well behind normal.
About 9,000 canola contracts had traded as of 8:57 CDT.
Prices in Canadian dollars per metric ton at 8:57 CDT:
Canola Jul 460.20 up 0.60
Nov 474.90 dn 0.50
Jan 482.00 dn 0.30
Mar 488.90 up 0.10