By Glen Hallick, MarketsFarm
WINNIPEG, April 4 (MarketsFarm) – ICE Futures canola contracts were up in early trade Thursday morning, getting some support from increasing soybean prices on the Chicago Board of Trade.
The May canola contract was up C$2.00 to C$457.40 per tonne.
With United States/China trade negotiations underway in Washington, there has been speculation that a final deal could spill over into canola. Chinese Vice Premier Lui He is scheduled to meet with U.S. President Donald Trump this afternoon. However, a final deal is not expected until the end of April.
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Canola is also getting support from traders focusing on farmers’ spring planting intentions, farmers being reluctant to sell their canola, and spring road bans currently limiting their ability to make deliveries.
Tensions between Canada and China have continued to weigh on values, as have large canola supplies, and a lack of export demand. Also, the technical bias has shifted to the downside.
A third canola exporter has not been banned from selling canola to China, according to federal Minister of Agriculture Marie-Claude Bibeau. Rather, the minister stated the unnamed exporter only received a notice of non-compliance from Chinese authorities. However new sales to China have largely been non-existent since January.
The Canadian dollar on Thursday morning slipped to 74.82 U.S cents.
About 4,700 canola contracts had traded as of 8:41 CDT.
Prices in Canadian dollars per metric ton at 8:41 CDT:
Price Change
Canola May 457.40 up 2.00
Jul 465.30 up 2.00
Nov 477.30 up 2.20
Jan 483.50 up 1.90
