By Dave Sims, Commodity News Service Canada
WINNIPEG, June 13 – Canola contracts on the ICE Futures Canada platform were higher at 10:43 CDT Friday, following soybeans and generally gaining support from heavy spreading and liquidation of soymeal and soyoil.
There are no major, fundamental forces pushing the market right now, said an analyst. “It’s all just massive spreads and liquidation of spreads,” he said.
While canola is enjoying support from soyoil it is actually lagging behind the US market by a few dollars, which is normal, according to the analyst.
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Canola also received support from spillover buying in palm oil and rapeseed.
Rain this weekend in Saskatchewan and Manitoba could terminate any efforts to plant canola in certain areas. The Prairies could see four to six percent of total canola acres left unseeded due to the wet weather, said the analyst. However, he adds, while that is above normal, it is relatively equal to the amount left unseeded over the past few years.
Crops in most growing regions are off to a good start, they just need some nice weather, he concluded.
Around 6,500 contracts had traded as of 10:43 CDT, Friday, with the July/November spread accounting for the bulk of the activity.
Prices in Canadian dollars per metric ton at 10:43 CDT:
