ICE Review : Canola Weakens With Spec Liquidation

WINNIPEG, Manitoba--The ICE Futures canola market was weaker on Tuesday, with speculative profit-taking a feature.

Positioning ahead of updated renewable fuel blending requirements from the United States Environmental Protection Agency (EPA) accounted for some of the activity, according to a trader. Speculators were reportedly liquidating long positions and booking profits in case the rumoured EPA announcement generated any shocks to the vegetable oil markets.

The Canadian dollar was sharply stronger on the day, putting additional pressure on canola.

However, the ongoing concerns over tight supplies remained supportive. Domestic crushers also continue to show good demand.

About 16,675 canola contracts traded on Tuesday, which compares with Monday when 22,393 contracts changed hands.

Spreading accounted for 12,474 of the 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 
 

Spread trade prices 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 [e-mail]

(END) Dow Jones Newswires

12-07-21 1604ET