By Phil Franz-Warkentin, Commodity News Service Canada
October 9, 2013
Winnipeg – ICE Canada canola contracts were posting modest gains Wednesday morning, seeing some independent strength relative to CBOT soybeans as solid end user demand and supportive technical signals underpinned the Canadian futures.
Canola appears to be forming a bottom from a chart perspective, according to analysts accounting for some of the buying interest.
With the Canadian dollar a little softer and CBOT soyoil posting small gains crush margins also remain favourable for canola, which kept exporters and domestic crushers on the buy side, said traders.
In addition, farmers are slowing down their off-the-combine sales in hopes of seeing better prices down the road for their stored canola.
However, the record large crop grown in Western Canada this year remains a bearish influence overhanging the market. A softer tone in CBOT soybeans was also keeping some caution in the Canadian market.
About 6,000 canola contracts had traded as of 8:46 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:46 CDT:
