By Glen Hallick, MarketsFarm
WINNIPEG, June 13 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were on the rise at midday Tuesday, riding spillover from gains in the Chicago soy complex.
A trader said there has been a good amount of short covering going on the Chicago soyoil, ahead of tomorrow’s announcement by the United States Environmental Protection Agency on blending requirements. The renewable diesel industry has been urging the EPA to increase blending targets for 2023-25.
Additional support for canola was coming from increases in European rapeseed and Malaysian palm oil. Strong upticks in global crude oil prices were providing more spillover for vegetable oils.
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The trader stressed the need for rain on canola and other crops in Alberta and western Saskatchewan – the driest parts of the Prairies. He said should those forecast rains materialize this week, that would weigh heavily on canola values.
Bunge, the world’s largest oilseed processor, is set to acquire Viterra from Glencore. An analyst said the multi-billion-dollar deal is very likely to face regulatory scrutiny from a number of countries, including Canada.
Port workers at Vancouver and Prince Rupert voted more than 99 per cent in favour of strike action should talks for a new contract fail. Picket lines could be up as early as June 24.
As the U.S. dollar pulled back, the Canadian dollar was gaining ground with the loonie at 75.21 U.S. cents on late Tuesday morning, compared Monday’s close of 74.82.
Approximately 20,000 canola contracts were traded as of 10:35 CDT.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
Price Change Canola Jul 697.90 up 8.90 Nov 675.30 up 9.60 Jan 681.20 up 9.20 Mar 684.30 up 6.50
