Canola weakens with clearance of specifications
WINNIPEG, Manitoba – The ICE Futures canola market was weaker on Tuesday, with speculative profit taking.
Positioning ahead of updated U.S. Environmental Protection Agency (EPA) renewable fuel blending requirements has been part of the business, according to a trader. Speculators would have liquidated long positions and recorded profits in case the EPA’s announcement generated shocks in the vegetable oil markets.
The Canadian dollar was significantly stronger that day, putting additional pressure on canola.
However, lingering concerns about tight supplies remained favorable. Domestic crushers also continue to show good demand.
About 16,675 canola contracts were traded on Tuesday, which compares to Monday when 22,393 contracts changed hands.
The spread represented 12,474 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Jan 1,023.60 dn 3.50 Mar 993.70 dn 3.90 May 958.40 dn 1.20 Jul 910.80 dn 0.90
The prices of the spreads are in Canadian dollars and the volume represents the number of spreads:
Months Prices Volume Jan/Mar 31.90 over to 27.70 over 2,652 Jan/May 65.90 over to 65.70 over 142 Jan/Jul 115.40 over to 115.30 over 10 Jan/Nov 251.50 over 1 Mar/May 42.30 over to 34.30 over 2,286 Mar/Nov 221.10 over 1 May/Jul 53.40 over to 46.20 over 812 Jul/Nov 138.80 over to 132.30 over 317 Nov/Jan 2.30 over to 1.80 over 16
Source: Commodity News Service Canada
Write to Phil Franz-Warkentin at [email protected]
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