Canola futures ended higher on Tuesday, with the nearby March contract once again settling at the key $650/tonne benchmark.
Canola was supported by new US government guidance on the American 45Z biofuel tax credit. The proposals include limiting eligible feedstocks to the US, Canada, and Mexico, which should have positive implications for canola oil demand from the US. Chicago soybeans and soybean oil were both higher on the new guidance, which further supported canola. Palm oil and European rapeseed also pushed on the day, with advances in crude oil underpinning the market as well.
On the other hand, the Canadian dollar was higher, which helped to limit canola’s gains.
The March canola contract closed at $650 mark last week but backed away from that settlement before today.
March canola was up $4.30 at $650, and new-crop November gained $4.90 to $662.80.
