ICE Close: Canola Up on Prairie Dryness

Ongoing Prairie weather concerns provided support as canola futures finished higher on Tuesday.

A large portion of central and southern Saskatchewan continues to miss out on any significant shower activity, leading to uncertainty over the size of this year’s canola crop.

However, the large old-crop carryout and ongoing diplomatic dispute with China tempered the upside potential, as end users still see little reason to bid up the market.

The USDA released its latest old- and new-crop U.S. supply-demand estimates during the trading session. A sharp reduction in projected 2019 U.S. corn production gave that market a boost, which spilled into the other grains and oilseeds.

July canola gained $1.10 to $455.50, November was up $1.40 at $456.60 and January was $1.50 higher at $471.10.

Source: DePutter Publishing Ltd.

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