By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures are weaker Thursday in heavy activity that’s seen the March canola contract fall well below its major moving averages.
It appears canola is now excluded from the latest changes the United States Department of the Treasury made to the Section 45Z biofuel tax credit. Canadian canola oil has been one of the key imports for U.S. biofuel production with the U.S. being Canada’s top foreign customer of the oil.
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Added to that, there’s the uncertainty surrounding the tariff plans of the incoming Trump administration that’s set to take power on Monday.
Also, the Chicago soy complex, European rapeseed and Malaysian palm oil were to the downside, with slight declines in crude oil further compounding the situation.
Tightening canola supplies due to strong exports and domestic use plus a smaller than expected harvest is likely to lead to price rationing towards spring.
The Canadian dollar stepped back on Thursday morning, with the loonie at 69.53 U.S. cents compared to Wednesday’s close of 69.76.
Approximately 26,300 contracts were traded by 8:35 CST and prices in Canadian dollars per metric tonne were:
Price Change Canola Mar 615.30 dn 14.80 May 625.80 dn 14.00 Jul 634.10 dn 12.90 Nov 621.80 dn 8.50
