By Terryn Shiells, Commodity News Service Canada
Winnipeg, July 28 – The ICE Futures Canada canola market was moving higher at midday Tuesday, seeing a recovery after Monday’s sell-off was seen as overdone, analysts said.
Some spillover support also came from the advances seen in the Chicago soybean market.
Concerns about thunderstorms bringing too much moisture to canola crops in southern Manitoba Monday night and Tuesday morning added to the bullish tone, brokers said.
Ongoing expectations that canola supplies will be tight in 2015/16, due to drought lowering production in parts of Western Canada kept a firm floor under the market.
However, the upswing in the value of the Canadian dollar limited the advances, as it made canola more expensive to crushers and exporters.
Concerns about economic problems slowing demand from China and improving weather for US soybean crops were also bearish.
As of 10:31 CDT Tuesday, about 10,500 contracts traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:31 CDT:
