By Phil Franz-Warkentin, Commodity News Service Canada
October 10, 2013
Winnipeg – ICE Canada canola contracts were stronger Thursday morning, as solid end user demand and spillover from the gains posted in most outside oilseed markets provided support.
Malaysian palm oil, European rapeseed, and the CBOT soy complex were all higher in overnight activity, accounting some of the buying interest in canola.
Margins remain favourable for domestic processors, and some crushers were said to be offering improved basis levels in an attempt to draw in more supplies.
Canola also appears to be forming a bottom from a chart perspective, according to analysts who said the technical bias may be starting to turn higher.
However, the record large crop grown in Western Canada this year remains a bearish influence overhanging the market. Improving US soybean crop prospects were also keeping some caution in the oilseed markets.
About 7,000 canola contracts had traded as of 8:44 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:44 CDT:
