By Glen Hallick, MarketsFarm
WINNIPEG, April 1 (MarketsFarm) – ICE Futures canola contracts were trading either side of steady in early trade Monday morning, with little fresh news to push bids in one direction.
Support has continued to come from spring road bans across Western Canada, improved crush margins which is making canola oil more competitive with other vegetable oils, and the market having stayed above lows in March.
The continuing tensions between Canada and China have weighed on values. Speculation that United States farmers could be switching their planting intentions from corn to soybeans because of moderate to major flooding this spring, also weighed on values.
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The U.S. commodities markets are correcting from Friday’s bearish reaction to the U.S. Department of Agriculture’s Planting Prospects and Grain Stocks quarterly reports.
However, some support has been coming from hopes the U.S. and China will reach a trade deal by the end of April. High-level negotiations that wrapped up in Beijing on Friday will resume this week in Washington, D.C.
Before then, eyes will took to the USDA’s World Agriculture Supply and Demand Estimates due out April 9.
The Canadian dollar on Monday morning was steady at about 74.91 U.S. cents.
About 615 canola contracts had traded as of 8:26 CDT.
Prices in Canadian dollars per metric ton at 8:26 CDT:
Price Change
Canola May 455.60 up 0.30
Jul 462.50 dn 0.40
Nov 474.50 unchanged
Jan 481.00 up 0.20
