ICE Canada Morning Comment: Meng ruling, soyoil pushing down canola

Canadian dollar continues to rise

By Glen Hallick, MarketsFarm

WINNIPEG, May 28 (MarketsFarm) – Intercontinental Exchange (ICE) futures canola contracts were lower on Thursday morning following yesterday’s ruling on the extradition of Huawei executive Meng Wanzhou.

A British Columbia judge ruled on Wednesday that Meng stands accused of fraud and that meets the double criminality requirement in an extradition. China is displeased with the ruling, but has yet to take any further punitive measures against Canada. One Winnipeg-based trader said canola was pushed higher before the judge’s ruling in hopes that Meng would have been released.

Chicago soyoil was also weighing on canola values, being down by more than four-tenths of a U.S. cent. Lower European rapeseed added to weakness in canola.

Manitoba reported yesterday in its weekly crop report that spring planting in the province is about two-thirds complete. Saskatchewan releases its crop report later today.

The Canadian dollar was higher Thursday morning at 72.70 U.S. cents, compared to Wednesday’s close of 72.57.

About 5,000 canola contracts had traded as of 8:43 CDT.

Prices in Canadian dollars per metric tonne at 8:43 CDT:

Price Change
Canola Jul 461.20 dn 2.30
Nov 471.10 dn 1.20
Jan 477.60 dn 1.30
Mar 483.80 dn 0.60

Futures Prices as of May 28, 2020

Price Change
Milling Wheat
1970-01-01 00:00
Price Change
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

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