By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 2 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Wednesday, as gains in Chicago Board of Trade soyoil and weakness in the Canadian dollar provided support.
The United States government is reportedly close to announcing a new plan to boost biofuel production in the country, which accounted for the strength in soyoil that spilled into the canola market, according to a trader.
Ongoing concerns over recent winter weather and the resulting harvest delays across Western Canada remained supportive for canola as well.
However, forecasts calling for improved weather over the next week tempered the upside.
Losses in CBOT soybeans and technical resistance also put some pressure on values.
About 18,000 canola contracts traded as of 10:41 CDT.
Prices in Canadian dollars per metric tonne at 10:41 CDT:
Price Change
Canola Nov 454.50 up 2.30
Jan 463.30 up 2.00
Mar 471.80 up 2.10
May 479.00 up 2.50
