By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 19 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Thursday, taking some direction from Chicago Board of Trade soyoil.
Soyoil was up amid talk that the U.S. Environmental Protection Agency (EPA) would not be cutting biofuel requirements, as had been rumoured recently. “The ag processor lobby is pretty powerful, and they’ve been lobbying aggressively against this,” said a broker, although he added that there was still a lack of official news.
“If bean oil stays strong . . . then canola may be able to catch up late and move through the C$500 mark,” the broker added.
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The November canola contract traded above the C$500 per tonne mark in each of the five previous sessions, but ran into resistance every time to settle below that chart point.
While the harvest is still ongoing in parts of Alberta, the weather looks reasonable over the next few weeks, which should keep a lid on canola, according to participants.
About 15,000 canola contracts had traded as of 10:45 CDT, with the November/January spread a feature as traders continue to roll out of the front month.
Milling wheat, durum, and barley futures were all untraded and unchanged.