Sharp declines in Chicago soybean and soybean oil futures sent canola futures to heavy losses on Thursday.
The July soybean contract fell more than 26 cents/bu while soybean oil posted limit losses on rumours the Environment Protection Agency submitted the biomass diesel renewable volume obligation – the volume of renewable fuels that must be used in the U.S. fuel supply – for government review at 4.65 billion gallons. If true, it is well below the previous expected 5.25 billion gallons that was proposed by an alliance of biofuel and oil producers.
European rapeseed futures were also lower on the day, along with palm oil. Gains in the Canadian dollar added further pressure to canola.
July canola lost $27.10 to $694.40, and November dropped $24.10 to $668.
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