By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 13 – ICE Canada canola contracts were posting solid gains Tuesday morning, seeing some spillover buying interest from the advances in CBOT soybeans and soyoil.
Soybeans were up on Monday, when Canadian markets were closed for Thanksgiving, and were posting even larger gains on Tuesday. Malaysian palm oil and European rapeseed futures were also higher overnight.
Supportive chart signals contributed to the gains, as canola bounced off of nearby support.
Steady commercial demand, a weaker Canadian dollar, and a lack of aggressive farmer selling were also cited as supportive influences.
However, ideas that canola is looking overpriced compared to other oilseeds did temper the advances. Rising Canadian production expectations were also overhanging the market.
About 10,500 canola contracts had traded as of 8:55 CDT.
Milling wheat, durum, and barley futures were all untraded.
