By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 20 (MarketsFarm) – ICE Futures canola contracts were down sharply Thursday morning, as improving Prairie moisture prospects and gains in the Canadian dollar weighed on values.
Dry areas of south central Saskatchewan were seeing some shower activity Thursday morning, with more precipitation in the nearby forecasts. While more rain will be needed in the driest areas, the moisture was taking some of the weather premiums out of the market.
Sharp gains in crude oil, amid increasing tensions between the United States and Iran, sent the Canadian dollar climbing higher Thursday morning. The rising currency added to the weaker tone in canola, making the commodity more expensive for global buyers.
Strength in Chicago Board of Trade soybeans provided some underlying support.
About 4,700 canola contracts had traded as of 8:44 CDT.
Prices in Canadian dollars per metric ton at 8:44 CDT:
Canola Jul 454.00 dn 1.50
Nov 467.00 dn 2.30
Jan 473.50 dn 2.40
Mar 478.90 dn 2.70