By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Sept. 10 – Canola contracts on the ICE Futures Canada platform were stronger at midday Thursday, posting solid gains for the third straight session amid a lack of significant selling pressure.
Farmers and speculators were both said to be reluctant sellers at current levels, while end user demand was said to be picking up from both exporters and domestic crushers.
Gains in CBOT soyoil and other outside vegetable oil markets provided further support for canola, according to traders.
Recent weather concerns in parts of Western Canada were also supportive, as harvest delays and quality issues were being noted.
However, looming harvest pressure, a firmer Canadian dollar, large old crop stocks, and bearish chart signals all served to limit the upside potential, according to participants.
About 15,000 canola contracts had traded as of 11:05 CDT.
Milling wheat, durum, and barley were all untraded.