ICE Midday: Canola rises with comparable oils

Glacier FarmMedia | MarketsFarm – The ICE Futures canola market sharply rose on Friday, fueled by comparable oils.

Chicago soyoil, European rapeseed and Malaysian palm oil all saw large gains. Crude oil also surged more than US$1 per barrel due to sanctions to be imposed on Russian oil.

The Canadian Grain Commission reported canola exports for the week ended Jan. 5 at 189,700 tonnes. So far this marketing year, canola exports are at a record pace at 4.722 million tonnes, compared to 2.507 million one year ago.

One analyst said the Biden administration will announce new guidance for the 45Z biofuel tax credit later today, which has lit a fire in oilseeds. He also said United States demand for biofuel could create a situation where canola fills a need for used cooking oil.

The U.S. Department of Agriculture will release its monthly supply/demand estimates, as well as its quarterly stocks report and its grain seedings report later today.

The Canadian dollar was down two-tenths of a U.S. cent compared to Thursday’s close.

About 55,100 contracts have traded at 10:21 CST. Prices in Canadian dollars per metric tonne:

Price          Change

Mar 636.00     up 11.10

May 644.90     up 13.00

Jul 649.60     up 14.30

Nov 627.30     up 14.60