By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 6 (MarketsFarm) – ICE Futures canola contracts were weaker Monday morning, continuing their downward slide of the previous week to hit fresh contract lows for the sixth-straight session.
Early losses in the Chicago Board of Trade soy complex put some spillover pressure on canola, as the futures reacted to concerns over heightened trade tensions between the United States and China. U.S. President Donald Trump tweeted over the weekend that he would increase tariffs on US$200 billion worth of Chinese imports.
The ongoing lack of progress on Canada’s own trade issues with China added to the softer tone in canola.
On the other side, weakness in the Canadian dollar provided some support. Oversold price sentiment also helped temper the declines, and canola was trading off of its overnight lows.
About 6,600 canola contracts had traded as of 8:56 CDT.
Prices in Canadian dollars per metric ton at 8:56 CDT:
Price Change
Canola Jul 430.90 dn 1.70
Nov 444.70 dn 2.20
Jan 450.90 dn 2.10
Mar 457.40 dn 2.00
