By Glen Hallick, MarketsFarm
WINNIPEG, March 20 (MarketsFarm) – Canola bids are up midday Wednesday, but any expected bounce will not last long, according to a Winnipeg-based trader.
While a lower Canadian dollar so far Wednesday is providing some support for canola bids, there is very little substantive to push prices up, he said.
The trader emphasized the negative impact of ongoing situation between Canada and China remains the strongest influence on canola bids.
Export sales of canola from Canada to China have largely dried up since the beginning of 2019, following the arrest of a Huawei executive. Soon after two Canadians were detained by Chinese authorities, who have since been accused the pair of espionage.
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At the beginning of March, Richardson International had its license to sell canola to China revoked, on the pretext a shipment was infected with pests. That remains an allegation Chinese authorities have yet to substantiate.
The trader noted that any positive news from the United States/China trade talks would help canola bids, but such news has been sparse.
He also commented there is the widest spread between old crop and new crop he has since in a few years.
About 4,400 canola contracts were traded as of 10:54 CDT.
Prices in Canadian dollars per metric tonne at 10:54 CDT:
Price Change
Canola May 466.00 up 1.50
Jul 473.90 up 1.50
Nov 485.80 up 1.00
Jan 491.60 up 1.20
