ICE Midday: Middle East tensions, biofuels raise canola prices

Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange gained strength from surging crude oil prices and reports of new biofuel proposals from the United States.

Israel launched attacks on Iran on Thursday night, which caused crude oil prices to rise by as much as US$5 per barrel.

Earlier today, there were news reports the U.S. Environmental Protection Agency will submit proposals which include a higher proportion of biofuels than expected. An analyst said these would create greater demand for vegetable oils. Chicago soyoil traded up its daily limit of three U.S. cents per pound.

European rapeseed and Malaysian palm oil also traded higher.

The Canadian dollar was up one-tenth of a U.S. cent compared to Thursday’s close.

About 85,900 canola contracts have traded at 10:15 CDT. Prices in Canadian dollars per metric tonne:

Price          Change

Jul 732.50     up  8.70

Nov 721.70     up 13.50

Jan 729.00     up 13.50

Mar 732.60     up 11.50