By Glen Hallick, MarketsFarm
WINNIPEG, March 7 (MarketsFarm) – ICE Futures canola contracts were down in early trade Thursday morning as China’s actions against Richard International weigh on values.
Canola futures this morning were trading down C$1 to C$3 per tonne, with the May contract at C$452.20 per tonne.
Chinese authorities stated they found pests in canola shipped by Richardson International, and cited that as their reason for cancelling the company’s registration to sell canola to the country. However, the authorities did not specify what type of pests.
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Richardson International and Canadian officials denied the claims. It is widely believed China took the action in retaliation over Huawei executive Meng Wanzhou’s extradition hearing that began this week.
China has imported from Canada 2.381 million tonnes of canola to date, according to the Canadian Grain Commission. China planned to acquire 4.715 million tonnes of canola and rapeseed, of which 90 per cent was to have come from Canada.
As canola prices fell this week, there have been reports of Canadian farmers planning to seed fewer canola acres in the coming months.
The soybean complex on the Chicago Board of Trade was mixed Thursday morning. Soybeans and soymeal were up, while soyoil was down. The May soybean contract gained two cents to US$9.04 per bushel.
The Canadian dollar on Thursday morning was up at 74.50 U.S. cents.
About 2,900 canola contracts had traded as of 8:29 CST.
Prices in Canadian dollars per metric ton at 8:29 CST:
Price Change
Canola May 452.20 dn 3.10
Jul 460.60 dn 3.10
Nov 473.50 dn 2.30
Jan 480.90 dn 1.10
