ICE canola futures follow Chicago soyoil higher
WINNIPEG, Manitoba, June 16 (Reuters) - ICE canola futures jumped on the soyoil bandwagon on Monday and made fresh 19-month highs, with new crop months particularly strong.
• The Chicago soyoil BOv1 market shot up on the Monday opening, following Friday's limit gains, with the U.S. EPA's new biofuels rules seen by traders as bullish for future soyoil consumption.
• July canola RSN5 settled up $12.10 at $743.10 per metric ton. November RSX5 rose $12.70 to $735.90. Monday volume for November was almost as high as on Friday, which was much higher than in the weeks before the EPA rules began being reported.
• The July-November spread is the tightest it has been since early April, with most of the inverse now gone.
• Traders said the EPA's biofuels rules released Friday, which caused a limit-up surge in soyoil, are seen as strongly supportive for canola oil exports to the U.S., and for export canola values. The more U.S. soybean crop is used up in biofuels production, the better it is for canola as an alternative fuel stock; this also reduces U.S. soybeans supplies on world markets.
• Chicago Board of Trade soybean futures Sv1 hit a one-month high and soyoil futures BOv1 hit a 20-month high after having trading limits expanded, rising almost 9%.
• Canola is more sensitive to vegoil prices than soybeans are because a far higher proportion of the canola seed is oil, while most of soybeans' value comes from the protein meal.
• Euronext August rapeseed futures COMQ5 fell 1.16%.
• Malaysian palm oil futures FCPOc3 jumped 4.25% following a gap-up opening, following gains in Chicago on Friday. POI/
• The Canadian dollar CAD= rose on unexpectedly strong housing starts. CAD/
• Crude oil CLc1 fell on Monday, giving back most of Friday's Iran-Israel war gains, as oil availability seems to traders to be less at threat than initially thought. Rumors of Iran wanting to negotiate a ceasefire rather than expand the war raised hopes that the war will not spread to other parts of the Persian Gulf.
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