ICE Canadian canola futures jumped on Tuesday after speculation about a US executive order on ethanol drove up soyaoil prices, but canola's gains ebbed after the White House said no such order was in the works. Soyaoil and canola are feed stocks in production of biodiesel.
Traders took speculative positions that an ethanol waiver and a biodiesel producer credit would boost use in the United States of corn-based ethanol and soyaoil-based biodiesel. Canola's early gains attracted farmer sales, which commercial buyers hedged by selling the futures, a trader said. March canola gained $6.60 at $518.60 per tonne.