By Phil Franz-Warkentin
Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was weaker at midday Wednesday, taking direction from the Chicago soy complex.
Soyoil and soybean futures were sharply lower on uncertainty over biodiesel policy in the United States, as the country’s updated Congressional spending bill included no mention of extending blenders tax credits on renewable diesel.
European rapeseed and Malaysian palm oil futures were also lower.
However, the underlying fundamentals remain supportive for canola, with tightening supply projections coupled with solid end user buying interest from both exporters and domestic crushers highlighting the need to ration demand going forward.
Weakness in the Canadian dollar also underpinned canola, as the currency held below 70 U.S. cents.
An estimated 35,500 canola contracts traded as of 10:43 CST.
Prices in Canadian dollars per metric tonne at 10:43 CST:
Canola Jan 590.70 dn 3.30
Mar 597.60 dn 4.90
May 604.60 dn 5.10
Jul 606.80 dn 5.40
