By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 20 (MarketsFarm) – ICE Futures canola contracts were slightly higher at midday Monday as there could increases in the Chicago soy complex on Tuesday, according to a Winnipeg-based trader.
“The odds are we’re going to get a firmer start tonight following the buying on Friday. Therefore, traders want to be buying canola today in anticipation of that,” he explained.
The United States markets are closed today for Martin Luther King Jr. Day.
The trader said with the recently-signed Phase One trade deal, China will be a strong player on the U.S. markets, affecting prices for the next year or two.
“I think China is going to pick and choose their spots. They may wait until the South American crops are more readily on the market before they do a lot of buying,” he commented.
The trader also noted that canola increased by US$30 per tonne on the U.S. markets over the last several weeks, having made some headway in catching up to soyoil.
“Canola is still attractively priced, just not as much as it was,” he said.
So far today the Canadian dollar was steady at 76.57 U.S. cents.
Approximately 6,700 canola contracts were traded as of 10:45 CST.
Prices in Canadian dollars per metric tonne at 10:45 CST:
Canola Mar 482.40 up 1.40
May 490.40 up 1.20
Jul 495.80 up 1.10
Nov 498.00 up 0.20
Futures Prices as of January 20, 2020
Prices are in Canadian dollars per metric ton