Canola futures shook off harvest pressure to close higher on Tuesday.
Strength in Chicago soy complex offered support to canola, with soybean oil rising for the fifth straight day on ideas of increased demand for biofuel production. The U.S. Environmental Protection Agency earlier today issued a proposal for reallocating to large refineries the biofuel blending obligations waived under the Small Refinery Exemption (SRE) program.
Advances in crude oil and European rapeseed also supported canola.
Statistics Canada will release updated, model-based crop production estimates tomorrow at 8:30 am EST. The report will reflect conditions as of the end of the end of August. StatsCan’s first set of estimates, released last month, reflected conditions as of the end of July and pegged expected canola output at just under 20 million tonnes.
November canola gained $6.50 to $640.80, and January was $7.90 higher at $652.70.
