Canola oil is derived from rapeseeds, which were first grown and cultivated in Canada starting in the 1970s, and is the second largest oil crop. In fact, the name canola is an acronym for "Canadian oil, low acid". Thanks to some controversial genetic modifications, canola can now be grown in a much wider zone stretching from northern U.K. and Wales all the way to the other side of the world in Australia, where it is their third biggest crop. Today, 90% of all canola used in the U.S. comes from farms in North Dakota. Canola is currently considered an American cash crop, and although the U.S. is a net consumer of canola oil, major customers include Japan, Mexico, and China.
| Canola Oil Contract Specifications | |
| Contract Size | 1 contract = 20 tonnes |
| Trading Hours | New York: 08:00 PM – 02:15 PM Next day (Pre-Open 7:30 PM) |
| London: 01:00 – 19:15 (Pre-Open 00:30) | |
| Singapore: 08:00 PM – 2:15 AM Next Day (Pre-Open 7:30 AM) | |
| Product Code | RS |
| Pricing Basis | Free on Board value at points in the Par region |
| Currency | Canadian dollars |
| Delivery Months | January (F), March (H), May (K), July (N), November (X) |
| Deliverable Specifications | Contract deliverable grades shall be based on primary elevator grade standards as established by the Canadian Grain Commission (CGC).
Non-commercially clean Canadian canola with maximum dockage of 8%; all other specifications to meet No. 1 Canada canola at par; or Deliverable at $5.00/net tonne premium: commercially clean No. 1 Canada canola; or Deliverable at $8.00/net tonne discount: commercially clean No. 2 Canada canola; or Deliverable at $13.00/net tonne discount: non-commercially clean Canadian canola, with maximum dockage of 8%; all other specifications to meet No. 2 Canada canola. Varieties derived from GMOs are deliverable. |
| Trade Match Algorithm | First-in-First-out (FIFO) |
| First Notice Day | One Trading Day prior to the first delivery day. |
| First Delivery Day | First Trading Day of the delivery month. |
| Last Trading Day | Trading Day preceding the fifteenth calendar day of the delivery month. |
| Final Notice Day | First Trading Day after the last Trading Day of the delivery contract. |
| Minumum Price Flux | $0.10/tonne ($2.00/contract) |
| Daily Price Limit | $30.00/tonne above or below previous settlement. See ICE Futures Canada Rule 15 for details on Expanded Daily Price Limits. |
| Exchange | ICE Exchange |
| Source: The ICE | |
Last updated September 2015
Additional Info
Recent Posts on Canola
- Market Spotlight: Canola (2/26/2014) - Canola is a genetic variation of rapeseed developed by Canadian plant breeders specifically for its nutritional qualities and its low level of saturated fat. The term Canola is a contraction of "Canadian oil."
- Market Spotlight: Soybean Meal (10/16/2012) - Soybean Meal is produced through processing and separating Soybeans into oil and meal components. By weight, Soybean Meal accounts for about 35% of the weight of raw Soybeans (at 13% moisture). If the Soybeans are of particularly good quality, then the processor can get more meal weight by including more hulls in the meal while still meeting the 48% protein minimum.