By Dave Sims, Commodity News Service Canada
WINNIPEG, October 27 – Canola contracts on the ICE Futures Canada platform were stronger at 10:50 CDT Monday, as values recovered from Friday’s selloff in the wake of an explosion at the Louis Dreyfus canola crushing plant in Yorkton, Saskatchewan.
“Yorkton’s plant explosion definitely had an impact on canola. It did trigger some selling and canola’s probably just gaining back on some of those losses,” said an analyst.
Values also received sizable support from US soy meal as well.
“The meal market is still quite tight and strong in the US,” said the analyst, noting it was underpinning the entire oilseed complex.
Rain in drought-stricken regions of Brazil pressured values, as did the stronger Canadian dollar and the advancing US soybean harvest.
About 12,000 canola contracts had traded as of 10:50 CDT, with the November/January spread accounting for the bulk of the activity.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:
