By Phil Franz-Warkentin, Commodity News Service Canada
October 2, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:45 CDT Wednesday, seeing a corrective bounce off of Tuesday’s lows.
November canola tested chart support below US$477 per tonne in overnight activity, but uncovered some buying interest at that point and moved higher.
Gains in CBOT soybeans provided some spillover support for canola. European rapeseed futures also posted large gains on Wednesday.
Solid end user demand and a lack of significant farmer selling, as producers are said to be holding out for higher prices, added to the firmer tone in canola.
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However, expectations for a record large Canadian canola crop remained a bearish influence overhanging the market. Statistics Canada releases its latest production estimates on Friday, with pre-report guesses generally topping 16.0 million tonnes. That would compare with the previous StatsCan estimate of 14.7 million tonnes and the 13.9 million tonne crop grown in 2012.
Losses in CBOT soyoil also served to temper the upside in canola, according to participants.
About 13,500 canola contracts had traded as of 10:45 CDT.
Milling wheat, durum, and barley futures were untraded on Wednesday after seeing some price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 10:45 CDT:
