ICE Canola

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The ICE Canola contract is traded through ICE Futures Canada, the subsidiary of the Intercontinental Exchange formerly known as the Winnipeg Commodity Exchange (WCE). The canola futures and options are traded electronically.

ICE's futures and options on futures contracts for ICE Western Barley, ICE Canola and ICE Feed Wheat transitioned from the WCE trading platform to the ICE Trading Platform on December 10, 2007.[1]

Background

Canola is a genetic variation of rapeseed, developed by Canadian plant breeders for its nutritional qualities, particularly the low level of saturated fat. Canola is used to make cooking oil and biodiesel, a renewable fuel[2].

Canola is grown primarily in regions of Western Canada, with some acreage being planted in Ontario, the Pacific Northwest and north central US. Canola is also grown in other regions including Europe and Australia.

Data Quotes

ICE offers data quotes on a subscription basis.[3]

References

  1. Intercontinental Exchange Announces Successful Transition of WCE Products to ICE Trading Platform. WSJ.com.
  2. Canola Uses. Northern Canola Growers Association.
  3. The most valuable commodity is information. ICE.
Canola Oil Futures
Trading Screen Product Name Canola Futures
Trading Screen Hub Name ICUS
Contract Symbol RS
Currency Canadian dollars.
Delivery Months January, March, May, July, November.
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.

Delivery Locations Par: Par area in Saskatchewan.

Central West: Non-par locations in Saskatchewan at $2.00/tonne premium. Eastern: Non-par locations in Manitoba at $2.00/tonne discount. Western: Non-par locations in Alberta (excluding the Peace River District of Alberta) at $6.00/tonne premium. Peace River: Non-par locations in Alberta and British Columbia known as the Peace River District at $2.00/tonne premium.

Contract Size 1 contract = 20 tonnes.
Trade Match Algorithm First-in-First-out (FIFO).
First Notice Day One Trading Day prior to the first delivery day.
Delivery Date First Trading Day of the delivery month.
Last Trading Day Trading Day preceding the fifteenth calendar day of the delivery month.
Last Notice Day First Trading Day after the last Trading Day of the delivery contract.
Minimum Price Fluctuation $0.10/tonne ($2.00/contract).
Daily Price Limit $30.00/tonne above or below previous settlement. See ICE Futures U.S. Rule 12.02 for details on Expanded Daily Price Limits
Speculative Position Limit 3,000 contracts (In spot month only - see ICE Futures U.S. Rules for details)
Markers TAS (Trade at Settlement)[1]
MIC Code IFUS
Clearing Venues ICUS
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 8:00 PM - 2:20 PM*

20:00 - 14:20

7:30 PM

19:30

LONDON 1:00 AM - 7:20 PM*

01:00 - 19:20

12:30 AM

00:30

SINGAPORE 9:00 AM - 3:20 AM*

09:00 - 03:20"

8:30 AM

08:30

*Next Day

In addition to the Pre-Open start time shown above, there will be a Post-Close Pre-Open order entry session from 2:50 pm to 6:00 pm NY time on the prior Exchange business day."

Codes Clearing Admin Name Canola US
Physical RS
Logical RS
GMI (FC) RS
ION A.C.N. None
Canola Oil Options
Trading Screen Product Name Canola Futures
Trading Screen Hub Name ICUS
Contract Symbol RS
Currency Canadian dollars.
Underlying Contract One Canola futures contract.
Contract Size 1 contract = 20 tonnes.
Contract Series Regular Months: January, March, May, July, November.

Serial Months: February, April, June, August, September, October, December.

For a serial option, the underlying futures contract is the next regular futures contract month.

Trade Match Algorithm First-in-First-out (FIFO).
Last Trading Day Options Months except January: The last Friday which precedes by at least two Trading Days the last Trading Day immediately preceding the Options Month. January Options Months: The third Friday of December.
Expiration Date Same as Last Trading Day.
Minimum Price Fluctuation $0.10/tonne ($2.00/contract).
Strike Price Increments $5.00/tonne.
Option Style American.
Exercise All options that are in-the-money.
MIC Code IFUS
Clearing Venues ICUS
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 8:00 PM - 2:20 PM*

20:00 - 14:20

7:30 PM

19:30

LONDON 1:00 AM - 7:20 PM*

01:00 - 19:20

12:30 AM

00:30

SINGAPORE 9:00 AM - 3:20 AM*

09:00 - 03:20

8:30 AM

08:30

*Next Day

In addition to the Pre-Open start time shown above, there will be a Post-Close Pre-Open order entry session from 2:50 pm to 6:00 pm NY time on the prior Exchange business day.

Codes Clearing Admin Name Options - Canola
Physical RS
Logical RS
GMI (FC) RS
ION A.C.N. None
Canola 1-month Calendar Spread Options
Trading Screen Product Name Canola 1-Month CSO
Trading Screen Hub Name ICUS
Contract Symbol RS1 (1 Month Series)

Determining the two futures months in a CSO pair requires knowing the Month Symbol of the first month in the pair. All canola CSOs are consecutive (1-month) calendar spread options. For example, if the Month Symbol for a CSO contract is K14 (or May 2014), the second month in the pair is N14 (or July 2014) – one contract month forward from the K14"

Underlying Contract A spread position between the two futures contract months.
Contract Size Twenty (20) metric tonnes
Price Quotation Canadian dollars and cents per metric tonne.
Contract Series January, March, May, July and November.

1 Month Series: each of the first six listed futures months, paired with consecutive listed months.

Minimum Price Fluctuation 10 cents per tonne
Option Style American
Exercise All options that are in the money
Daily Price Limit None
Strike Price Intervals Minimum Strike Price Increment will be $1.00.
First Trading Day As required to fulfill the listing cycle noted above
Last Trading Day Each CSO expires on the last trading day of the regular option on the earlier of the two contract months in the spread pair; for example, all CSO contracts for which the March 2014 future is the front month of the pair will expire on the last trading day of the March 2014 regular option.
Call Option Buyer of a CSO Call Option has the right to establish a spread position of long the first futures month in the spread pair and short the second futures month in the spread pair, at a price difference equal to the Strike Price of the CSO contract
Put Option Buyer of a CSO Put Option has the right to establish a spread position of short the first futures month in the spread pair and long the second futures month in the spread pair, at a price difference equal to the Strike Price of the CSO contract.
Strike Price The Strike Price of a CSO contract can be positive (indicating the price of the front month is above the price of the back month in the pair), negative (indicating the price of the front month is below the price of the back month in the pair) or zero (indicating the prices of the two months in the pair are the same).
MIC Code IFUS
Clearing Venues ICUS
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 8:00 PM - 2:20 PM*

20:00 - 14:20

7:30 PM

19:30

LONDON 1:00 AM - 7:20 PM*

01:00 - 19:20

12:30 AM

00:30

SINGAPORE 9:00 AM - 3:20 AM*

09:00 - 03:20

8:30 AM

08:30

*Next Day
Codes Clearing Admin Name Canola US
Physical RS1
Logical RS1
GMI (FC) R1
ION A.C.N. None

Notes

References

  1. TAS. {{{org}}}.

Resources

Last modified on 15 January 2021, at 18:21