ICE Canola Higher On Weather Concerns

Canola saw a light trade with intermonth spreading enhancing the volumes. The total estimated volume at 10:50 CDT was 4,376 contracts.

Canola was lifted by rising concern about dryness affecting crops in Alberta and Saskatchewan. In the past 24 hours, showers did appear in the area but covered only about 30% of the problem areas, according to brokers. They also noted that some areas saw only very light showers.
The weather concerns have virtually halted farmer selling in both the new crop and the old crop with old crop basis levels now at a premium to the July futures contract.

Ideas the market was oversold and the continued strong export lineup into the summer contributed to the firmness as canola ignored a weak tone in the Chicago Board of trade soy complex, traders said,.

Commenting on the small volume, several brokers felt it was a function of the lack of sellers.
"Farmers certainly don’t want to sell now, but even commercials and specs are not very willing to sell this market when weather could reduce the crop by several million metric tons", said a broker.

Trade is heavily commercial with routine exporter and crusher buying meeting light country selling and some commercial, thought to be exporter, selling.

Western barley is seeing small losses in very thin activity.
The market continues to suffer from a lack of interest ahead of the introduction of a revised barley futures contract on June22nd, brokers said.

At 11:00 CDT, the total estimated volume was only 1 contract.

Prices at 11:00 CDT in Canadian dollars per metric ton: