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.

 
              Price      Change 

Canola

   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]

(END) Dow Jones Newswires

12-07-21 1604ET