By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 10 (MarketsFarm) – ICE Futures canola contracts were weaker Friday morning, although activity was thin and choppy as participants await the release of the United States Department of Agriculture’s monthly supply/demand report.
Strength in the Canadian dollar accounted for much of the early selling pressure, as the currency was up by about half a cent relative to its U.S. counterpart.
Canada’s ongoing trade dispute with China, large old crop supplies, and relatively favourable Western Canadian seeding weather all contributed to the softer tone in canola.
The United States raised tariffs on Chinese imports overnight, heightening trade concerns between the two countries even as negotiations continue this week. China has said it will retaliate, with agricultural commodities a likely target. However, soybeans were steady in early activity despite the trade uncertainty.
About 2,100 canola contracts had traded as of 8:58 CDT.
Prices in Canadian dollars per metric ton at 8:58 CDT:
Price Change
Canola Jul 435.20 dn 1.50
Nov 448.30 dn 2.00
Jan 454.70 dn 2.00
Mar 462.70 unchanged
