ICE Canola Weakens in wake of Bio-Fuel Announcement
By Dave Sims, Commodity News Service Canada
WINNIPEG, September 27 (CNS) – Canola contracts on the ICE Futures Canada platform were weaker at 10:40 CDT on Wednesday due to harvest pressure and losses in the US soy complex.
Yesterday’s announcement by the Environmental Protection Agency, that it was considering cuts to biofuel requirements under the Renewable Fuel Act in 2018 and 2019, was bearish for canola.
Increased farmer selling dragged on values and forecasts indicate rain could fall on parched regions of Brazil.
On the other side, recent weakness in the Canadian dollar has given some strength to futures as it makes canola more appealing on the international market.
Wet and cool weather continues to cause some harvest delays in Alberta and a few other places.
About 20,000 canola contracts had traded as of 10:40 CDT.
Milling wheat, barley and durum were all untraded.
Prices in Canadian dollars per metric ton at 10:40 CDT:
