By Glen Hallick, MarketsFarm
WINNIPEG, May 13 (MarketsFarm) – ICE Futures canola contracts were falling in early trade Monday morning, as the heating up of the United States/China trade war has forced soybean bids down on the Chicago Board of Trade.
Caught in the spillover, the July canola contract dropped C$3.60 at C$432.20 per tonne. The November contract fell C$3.90 at C$445.00 per tonne.
This morning, China retaliated against the tariff hike the U.S. imposed on Friday with tariffs of five to 25 per cent its own on US$60 billion of U.S. imports. U.S. President Donald Trump tweeted that China’s actions would mean things would only get worse for them.
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The continuing Canada and China dispute and canola being more expensive than soybeans have also weighed on values.
Declines in bids are being tempered somewhat by limited farmer selling and fewer canola acres planted in Canada this year.
The Canadian dollar was down Monday morning at about 74.47 U.S. cents, which also provided some support.
About 6,300 canola contracts had traded as of 8:35 CDT.
Prices in Canadian dollars per metric ton at 8:35 CDT:
Price Change
Canola Jul 432.20 dn 3.60
Nov 445.00 dn 3.90
Jan 451.30 dn 4.00
Mar 457.40 dn 3.90
