ICE Midday: Dry, hot weather heats up new crop canola

The ICE Futures canola market was mostly higher at midday Monday, but both it and the Chicago soy complex received support from hot and dry weather in North American growing areas.

While the lightly-traded July canola contract dropped more than C$20 per tonne ahead of its expiry, both the November and January new crop canola contracts reached limit up at C$30/tonne. Record temperatures in Western Canada, along with little to no precipitation, all aided in canola’s rise with little signs of stopping.

“There doesn’t seem to be any rain in the forecast over the next few days,” said a Winnipeg-based trader. “We’re maybe going to be in an up week for the next few days or so.”

Soy contracts also moved in concert with canola with soybeans rising by at least US$29/tonne. However, soyoil and soymeal’s gains have been limited to single digits.

The Canadian dollar was down one-fifth of a cent at midday.

Nearly 10,800 contracts were traded as of 10:39 a.m. CDT.

Price Change
Canola Jul 775.00 dn 23.90
Nov 769.50 up 30.00
Jan 765.00 up 29.00
Mar 754.50 up 26.50

The Western Producer

Tags: canola, weather, North America, crop, dryness, v