A falling Canadian dollar, stronger U.S. soyoil values and short covering because of canola’s recent strength helped ICE Canada canola futures rise Wednesday.
However, falling crude oil prices undercut canola, holding the gains in the Winnipeg contract.
Biodiesel demand for soybeans and small amounts of canola form a small part of canola’s demand structure.
July canola rose $3.70 per tonne to $390.80, while November canola rose $2.90 per tonne to $392.80 per tonne.
Chicago Board of Trade soy oil rose 25 cents US per pound to 38.93 cents per lb., while Chicago soybeans closed down nine cents per bushel to $9.78 per bu.
The Canadian dollar had fallen to 97.15 cents compared to the U.S. dollar by the end of the canola market, down about 0.41 cents.
U.S. light crude oil fell to $79.95 per barrel, down 3.4 percent.
The crisis in Greece continued to worry world commodity markets, weakening confidence in the euro, the economic situation in Europe and the health of the worldwide economic recovery.
At the Winnipeg exchange, 7,867 July canola futures contracts traded and 4,158 November contracts.
Western barley futures were untraded.
