WINNIPEG, Manitoba--Intercontinental Exchange canola futures were on the rise at midday Tuesday, as trading resumed after Monday's holiday.
Canola continued to build on the sharp gains it made on Friday, following the reports from the United States Department of Agriculture that cut soybean acres and reduced quarterly stocks, which led to steep increases in the Chicago soy complex. U.S. markets are closed Tuesday to mark Independence Day.
An analyst said the Canadian oilseed could see more gains in the coming days as veg oil prices are generally swinging upward and on the bullish reports on U.S. soybeans.
"I'm surprised canola isn't up more than it is," he commented, suggesting traders in Europe were likely behind the decent volumes for the oilseed on Tuesday.
As Saudi Arabia and Russia announced production and export cuts to their crude oil, world prices were higher on Tuesday, with spillover lending support to the vegetable oils. However, European rapeseed and Malaysian palm oil were lower.
The weather outlook for the Prairies forecast dryer than normal continuing in Saskatchewan and Manitoba, while Alberta was in line for some rain. Temperatures across the region are expected to be 20 to 25 degrees Celsius.
Alberta reported on Friday that its crops were 45% good to excellent, 30 points less than the same time last year and 29 behind the five-year average. The province's canola rated 43% good to excellent.
The Canadian dollar was higher at mid Tuesday morning, as the loonie climbed to 75.67 U.S. cents compared with Friday's close of 75.53.
Approximately 16,000 canola contracts were traded as of 11:42 EDT.
Prices in Canadian dollars per metric ton at 11:42 EDT:
Price Change
Canola Nov 747.90 up 11.50
Jan 753.10 up 10.20
Mar 756.00 up 8.30
May 758.90 up 7.90
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
07-04-23 1214ET
