WINNIPEG, Manitoba--Canola came out of Canada Day continuing to build on gains made going into the holiday, largely due to spillover from the Chicago soy complex.
On June 30, the U.S. Department of Agriculture released its planted-acres report, which saw soybeans lose four million acres from the 87.5 million seeded in 2022, leading to a bullish reaction on the Chicago Board of Trade.
David Derwin, commodity futures adviser for PI Financial in Winnipeg, said the patches of dry conditions on the Canadian Prairies added to the sharp upswing in canola values.
"But people are saying things look really good," he cautioned, noting much of the region needs good rains.
"Anything is possible when you got a weather-driven environment," Derwin said.
He pointed to the major resistance of C$760 to C$770 ($575 to $582) per metric ton in the new crop November contract on the Intercontinental Exchange, which in winter had been canola's support level.
"Historically these weather-driven spikes...often start to rollover coming into the end of June and the beginning of July. We were at $610 and we're at $760, so that's a big move in just over a month," Derwin said.
"This certainly gives an opportunity for people who haven't done much on the marketing side to look at some options at these levels, to put a floor in some really excellent prices," he said.
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
07-05-23 1624ET
