ICE canola turns higher, recovering from recent losses

By Phil Franz-Warkentin, Commodity News Service Canada

WINNIPEG, July 17 – Canola contracts on the ICE Futures Canada platform were mostly higher at midday Friday, as some support was uncovered to the downside and the market bounced off of nearby lows.
The speculative selling that has weighed on prices all week remained a feature in early activity, while light producer hedges were also bearish. However, the November contract found support at the C$512 per tonne level and turned higher.
Recent rainfall in Western Canada has helped stabilize the crops, which contributed to the early softness in canola, according to participants. However, production will still be down on the year and coverage was not consistent – keeping the weather concerns as a supportive influence overall.

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Ongoing weakness in the Canadian dollar, which has dropped to its lowest levels in six years relative to its US counterpart, helped underpin canola as well. CBOT soyoil futures were higher on Friday, which was also supportive for canola.
About 7,300 canola contracts had traded as of 10:59 CDT.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:59 CDT: