ICE Review: Biofuel Changes Pull Down Old Canola Crop Prices

WINNIPEG, Manitoba--Intercontinental Exchange (ICE) canola futures were mixed on Friday, with losses in the old crop months and gains in the new crop positions.

A trader commented that several countries are either scaling back or halting their biofuel blending requirements. Due to shortages, the oilseeds used for those biofuels are being redirected to food use.

Black Sea exports have dropped considerably due to the war in Ukraine and the growing economic sanctions slapped against Russia by the international community. That has generated some of the oilseed shortages, and especially wheat exports out of both countries.

The trader said this has sent wheat prices skyrocketing, especially the nearby Chicago May contract. However he warned that once things begin to settle in Ukraine, that Chicago contract will careen downward, taking other grains and oilseeds down with it.

The Canadian dollar was lower at mid-afternoon, with the loonie at 78.51 U.S. cents, compared to Thursday's close of 78.96.

There were 23,034 contracts traded on Friday, which compares with Thursday when 19,839 contracts changed hands. Spreading accounted for 9,494 contracts traded.

Settlement prices are in Canadian dollars per metric ton.

 
                    Price     Change 
 
Canola    May    1,074.80    dn 8.50 
 
          Jul    1,051.60    dn 4.40 
 
          Nov      895.00    up 4.90 
 
          Jan      893.30    up 4.10 
 

Spread trade prices are Canadian dollars and the volume represents the number of spreads:

 
Months     Prices                         Volume 
 
May/Jul    30.00 over to 23.00 over        2,186 
 
May/Nov   184.30 over to 182.00 over         138 
 
Jul/Nov   173.80 over to 154.80 over       2,052 
 
Jul/Jan   159.30 over to 157.90 over           2 
 
Nov/Jan     2.00 over to 0.10 over           369 
 
 

Source: Commodity News Service Canada, news@marketsfarm.com

(END) Dow Jones Newswires

03-04-22 1618ET