ICE Canada Morning Comment: Adding more strong gains
U.S. might reinstate canola for biofuel tax credits
By Glen Hallick
Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures continued higher on Wednesday morning, as trading resumed after being closed for Canada Day.
Indications from the United States that canola might again be eligible for biofuel tax credits underpinned the oilseed’s increases.
Canola was also getting support from gains in Chicago soybeans and soyoil, as well as in European rapeseed and Malaysian palm oil. Upticks in crude oil spilled over into the vegetable oils.
The November canola contract remained well above its major moving averages.
While parts of the Prairies received rain over the weekend, it’s unlikely it was enough to alleviate dry conditions.
The Canadian dollar was virtually unchanged on Wednesday morning, with the loonie at 73.32 U.S. cents.
Approximately 14,950 contracts were traded by 8:37 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Nov 725.50 up 15.80 Jan 733.30 up 14.90 Mar 739.10 up 13.60 May 743.90 up 12.10
