By Phil Franz-Warkentin
Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was mixed Wednesday, seeing some consolidation after climbing higher on Tuesday.
Proposed changes to biofuel policies in the United States remained supportive, but those proposals must still work their way through government approval processes.
Speculative profit-taking weighed on the old crop July contract, although it managed to settle above support at the former resistance level of C$720 per tonne. The new crop canola contracts were all higher, with advances in Chicago soyoil and a softer tone in the Canadian dollar contributing to the gains.
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There were 60,183 contracts traded on Wednesday, which compares with Tuesday when 64,575 contracts changed hands. Spreading accounted for 27,040 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday, hitting their highest levels in nearly 10 months as continued strength in soyoil provided support.
Soyoil remained underpinned by proposed amendments to U.S. biofuel policies that would see the 45Z clean fuel production biofuel tax credit extended through 2031, while limiting feedstocks to those sourced from the U.S., Canada and Mexico. That would effectively shut the door to used cooking oil imports from China or other feedstocks from South America.
Easing trade tensions after the U.S. and China cut reciprocal tariffs for 90 days earlier this week also remained supportive.
However, the active U.S. seeding pace and relatively favourable weather conditions tempered the gains.
CORN was mixed, with a firmer tone in the nearby July contract and losses in the more deferred positions. The good U.S. weather and seeding progress kept values narrowly rangebound.
Winter WHEAT futures in the U.S. corrected off five-year lows to post gains on Wednesday, while spring wheat remained pointed lower.
Early results of a crop tour of Kansas currently underway were showing improved yields on the year.
