By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
ICE Futures Canada canola ended higher on Wednesday, underpinned by advances in US vegetable oil markets.
Chicago Board of Trade soy oil advanced more than six per cent in the December contract on Wednesday, which provided spillover support to canola.
Soy oil was propped up by a biofuel announcement from the Environmental Protection Agency, which will require US refiners to use record amounts of biofuel in 2017.
The Canadian dollar declined against its US counterpart on Wednesday, which added to canola’s upside by making the commodity more appealing to international buyers.
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About 61,219 canola contracts traded on Wednesday, which compares with Tuesday when 21,784 contracts changed hands. Spreading accounted for about 51,396 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were steady to up four cents per bushel on Wednesday, as a rally in soyoil provided support.
Soyoil posted near limit-up gains following a statement from the US Environment Protection Agency (EPA) raising its targets for the amount of biodiesel in the country’s fuel supply.
Solid export demand remained supportive as well.
However, the large US crop and good South American seeding conditions tempered the advances.
Position-evening ahead of the US Thanksgiving holiday was another feature, as US markets will be closed on Thursday and only operate for reduced hours on Friday.
SOYOIL futures were up sharply on Wednesday, posting near limit up increases following the EPA news.
The government agency set a target for 2017 that would see 19.28 billion gallons of renewable fuel blended into the country’s fuel supply in 2017. That compares with 18.1 billion in 2016. The agency also set a target of 2.0 billion gallons of biomass-based diesel in 2017 and 2.1 billion in 2018.
SOYMEAL futures were weaker on Wednesday, with spreading against soyoil behind some of the selling.
CORN futures in Chicago were narrowly mixed on Wednesday, lacking any clear direction as traders squared positions ahead of the Thanksgiving holiday.
The EPA set an ethanol target for 2017 of 15 billion gallons, with an additional target of 311 million gallons for cellulosic ethanol.
WHEAT futures in Chicago were down by three to six cents per bushel on Wednesday, with strength in the US dollar index behind some of the selling pressure.
Concerns over drought conditions in parts of the Southern Plains remained somewhat supportive.
However, world wheat supplies remain more than sufficient to meet the demand.
