ICE Midday: U.S. Supreme Court decision knocks down markets

WINNIPEG – The ICE Futures canola market and the Chicago soy complex were reeling in the aftermath of a United States Supreme Court decision earlier today, dropping prices for new crop canola and soybeans.

While the July canola contract increased slightly, new crop canola contracts fell at least C$11 per tonne. In a 6-3 decision, the court supported a bid by oil refineries to be waived from legislation requiring additional levels of ethanol and renewable fuels to be blended with their products. As soy contracts went down, so did canola.

“Even though canola was strong on weather concerns, (the decision) was enough to still knock it down and quite a bit,” said a Winnipeg-based trader. “It’s one element of the biofuel market, these waivers, but it’s only one element. It’s not the whole market, but what it means now is that the Environmental Protection Agency (EPA) will be able to continue issuing waivers to refineries to reduce or eliminate the blending of biofuels, which will reduce usage and demand to some degree.”

Soybean contracts fell limit down shortly after the decision was announced, but have since recovered. Soyoil was also in the red, but soymeal contract values were increasing.

The Canadian dollar was up 0.2 of a cent at midday.

Nearly 16,900 contracts were traded as of 10:54 a.m. CDT.

Price Change
Canola Jul 800.40 up 11.30

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