By Phil Franz-Warkentin, Commodity News Service Canada
October 8, 2013
Winnipeg – ICE Canada canola contracts were stronger Tuesday morning, as supportive technical signals, solid end user demand, and spillover from the gains in CBOT soyoil all provided support.
European rapeseed and Malaysian palm oil also posted good gains in overnight activity, which added to the firmer tone in canola.
Canola appears to have found solid support in the C$475 to C$480 per tonne area, according to an analyst accounting for some of the speculative buying interest. Exporters and domestic crushers were also said to be making some purchases, with canola still priced favourably compared to other oilseeds.
However, the record large crop grown in Western Canada this year remains a bearish influence overhanging the market. A mixed tone in CBOT soybeans was also keeping some caution in the Canadian market.
About 4,600 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:
