By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 7 (MarketsFarm) – The ICE Futures canola market was weaker at midday Tuesday, taking some direction from the Chicago Board of Trade soy complex.
Positioning ahead of updated renewable fuel blending requirements from the United States Environmental Protection Agency (EPA) accounted for much of the activity, according to a trader. He said investors were liquidating long positions and booking profits in case an EPA announcement generates any shocks in the vegetable oil markets.
A lack of significant end user demand also weighed on values, with exporters said to be covered for the short-term.
The Canadian dollar was sharply stronger at midday, putting additional pressure on canola.
About 10,000 canola contracts traded as of 10:49 CST.
Prices in Canadian dollars per metric tonne at 10:49 CST:
Price Change
Canola Jan 1,020.50 dn 6.60
Mar 991.40 dn 6.20
May 956.50 dn 3.10
Jul 907.70 dn 4.10
