?ICE Canola Supported By E-CBOT Soybeans, Weather Uncertainty

Advances in Malaysian palm oil values encouraged a firm tone in canola as well.

Uncertainty about this year’s Canadian canola crop continues to provide a floor for canola prices, traders said.

According to the Canola Council of Canada’s weekly crop report dated June 24, parts of Manitoba remain excessively wet while Saskatchewan and Alberta are mostly too dry. The CCC noted that recent rainfalls in Saskatchewan provided only temporary relief and said additional rainfall is required because of poor sub-soil moisture reserves in many areas.

Crop development varies widely and warm weather and a return to more average moisture are needed to bring crop development up to normal, the CCC said.

Thin stands, which leave canola plants vulnerable to losses from insects, weed competition and environmental stresses, are a prairie-wide concern, the CCC warned.

The retreat of the Canadian dollar, climbing crude oil futures, reluctant farmer selling and a strong export line-up for will also help to underpin canola, a market analyst said.

Brokers warned, though, that North American stock markets were mixed and noted that spillover support from Chicago soybeans may be muted today. CBOT soybeans are expected to open with minor gains but further upside could be limited as trade participants take to the sidelines ahead of the June 30 USDA acreage report.

Early interest in canola was light, with only 405 contracts having been traded as of 9:03 CDT.

Meanwhile, western barley futures, both old and revised contracts, were untraded and unchanged as of 9:03 CDT. Higher opening calls for CBOT corn futures and expectations for a smaller Canadian barley crop will be supportive price influences, traders said. However, market watchers have reported talk that US corn prices are approaching attractive levels for shipment into southern Alberta, which would undermine the cash barley market.

Prices in Canadian dollars per metric ton at 9:03 CDT: