ICE canola crashing with soyoil

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was sharply lower at midday Thursday, as the latest biofuel rumours out of the United States sparked a heavy selloff in Chicago soybeans and soyoil.

Soyoil was down its daily limit, as talk circulated the market that proposed biofuel blending targets submitted by the U.S. Environmental Protection Agency were considerably less than what the industry had hoped for.

Speculative selling contributed to the losses in canola, with some stops likely hit on the way down.

However, tight old crop supplies and the need to ration demand provided some underlying support.

An estimated 35,600 canola contracts traded as of 11:08 CDT.

Prices in Canadian dollars per metric tonne at 11:08 CDT:

Canola            Jul   696.90    dn  24.60

Nov   671.00    dn  21.10

Jan   678.50    dn  19.40

Mar   685.20    dn  18.20