By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Aug. 23 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Wednesday, as North American vegetable oil markets found strength on the back of expectations for increased demand from the biodiesel sector.
The US Commerce Department issued a ruling finding that biodiesel exports from Argentina and Indonesia received subsidies and should be subject to countervailing duties. A final determination will be released in November, but cash deposits will start to be taken immediately. The duties are expected to effectively halt biodiesel imports from the two major sellers, raising the incentive for domestic production of the renewable fuel. Soybean oil and canola oil are the two major feedstocks in North America.
Read Also
ICE Canada Morning Comment: Canola slips lower
By Glen Hallick Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange saw overnight gains fade into small…
A lack of significant farmer selling, weakness in the Canadian dollar, tight old crop supplies, and uncertainty over new crop production all added to the firmer tone in canola, according to participants.
However, harvest operations are starting up across the Canadian Prairies, which should limit the upside in the near-term. Positioning ahead of the August 31 Statistics Canada production report was also expected to keep canola trading within its well established range.
About 12,000 canola contracts had traded as of 10:39 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.