By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 8 (MarketsFarm) – The ICE Futures canola market was weaker at midday Wednesday, dropping in sympathy with Chicago Board of Trade soyoil.
The sharp declines in soyoil were tied to updated blending requirements announced by the United States Environmental Protection Agency (EPA) after Tuesday’s close that lowered the amount of biofuel refiners in the country will be required to blend into fuels.
Chart-based speculative selling contributed to the losses in canola, as investors holding large long positions booked some profits.
However, the underlying fundamentals of tight supplies remained supportive, with the general technical trend also still pointing higher for canola, according to an analyst.
About 16,400 canola contracts traded as of 10:34 CST.
Prices in Canadian dollars per metric tonne at 10:34 CST:
Price Change
Canola Jan 1,006.00 dn 17.60
Mar 980.70 dn 13.00
May 946.80 dn 11.60
Jul 899.60 dn 11.30
