WINNIPEG – The ICE Futures canola market had another strong start to the day on Thursday, with spillover from crude and veg oils, along with support from rising temperatures in the Prairies.
Most of Alberta and parts of Saskatchewan were issued heat warnings on Thursday morning with temperatures expected to exceed 30 degrees Celsius. The heat wave will make its way eastward towards Manitoba starting Friday.
Crude oil was higher on Thursday largely due to tightening supply in the United States and speculation that the U.S. Federal Reserve will slow down its pace of key interest rate hikes. The Chicago soy complex continued its rally, with European rapeseed and Malaysian palm oil all higher.
The Canadian dollar exceeded the 78 U.S. cent mark, taking advantage of higher crude oil prices and weakness in the greenback. The Fed announced on Wednesday it raised its key interest rate by 75 basis points to combat inflation.
About 6,000 canola contracts were traded as of 8:44 a.m. CDT.
Prices in Canadian dollar per metric ton as of 8:44:
Nov. 842.90 up 18.50
Jan. 851.90 up 18.70
Mar. 859.40 up 17.90
May 864.00 up 15.50
