By Phil Franz-Warkentin, Commodity News Service Canada
October 16, 2013
Winnipeg – ICE Canada canola contracts were stronger Wednesday morning, seeing a corrective bounce following Tuesday’s declines.
Gains in CBOT soyoil provided the catalyst for the move higher in canola, according to participants. Malaysian palm oil and European rapeseed futures were also up in overnight activity. Technical signals contributed to the gains, as canola bounced off key support levels.
Solid end user demand remains a supportive feature in the canola market as well, with both exporters and domestic crushers said to be on the buy side.
A lack of significant farmer selling is underpinning the market as well, although the record large crop being held in western Canada does continue to overhang the futures and limit the upside potential.
About 9,000 canola contracts had traded as of 8:44 CDT.
Milling wheat, durum, and barley futures were all untraded, although wheat prices were adjusted following Tuesday’s close.
Prices in Canadian dollars per metric ton at 8:44 CDT:
