ICE Canada Morning Comment: Canola trying to pull away from losses
Canola left out of U.S. biofuel guideline changes
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures turned narrowly mixed on Friday morning, after coming out of the overnight session with small increases.
Canola fell sharply on Thursday after it was excluded from the interim rules on United States biofuel guidelines released the day before.
Support for the Canadian oilseed was coming from gains in the Chicago soy complex and European rapeseed, while Malaysian palm oil was mixed. Small declines in crude oil put pressure on the vegetable oils.
Tighter canola supplies and the need to ration demand continued to underpin values.
The Canadian Grain Commission reported canola exports for the week ended Jan. 12 were 203,000 tonnes, higher than those the previous week, and domestic use improved to 215,000 tonnes.
Uncertainty over tariffs and biofuel policy continued to loom large over the canola market as Donald Trump will be sworn in as President of the United States on Monday.
While the U.S. markets will be closed Monday for Martin Luther King Jr. Day, the Canadian markets will be open.
The Canadian dollar was weaker on Friday morning, with the loonie at 69.27 U.S. cents compared to Thursday’s close of 69.50.
Approximately 9,750 contracts were traded by 8:41 CST and prices in Canadian dollars per metric tonne were:
Price Change Canola Mar 607.10 up 0.30 May 616.30 dn 0.10 Jul 624.60 dn 0.20 Nov 618.00 up 1.20
