By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 1 (MarketsFarm) – ICE Futures canola contracts were down sharply at midday Friday, hitting their lowest levels since October 2016 as concerns over Chinese demand weighed on prices.
China is reportedly getting stricter on issuing GMO certifications for canola oil and meal imports from Canada, amid heightened political tensions between the two countries.
“That really has the market running for cover,” said a trader. In addition to fund traders adding to short positions, he said other participants holding long positions were liquidating as prices fell.
Weakness in the Canadian dollar, which was down by half a cent relative to its United States counterpart, provided some underlying support. Crush margins were up sharply, keeping domestic processors as active buyers on a scale-down basis.
About 30,000 canola contracts traded as of 11:04 CST.
Prices in Canadian dollars per metric tonne at 11:04 CST:
Price Change
Canola Mar 461.80 dn 1.60
May 459.00 dn 10.20
Jul 467.70 dn 9.60
Nov 481.60 dn 2.90
