ICE Canada Morning Comment: Canola gaining strength
Canada takes Chinese tariffs to WTO
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were higher on Tuesday morning, turning around after likely being oversold from a series of declines.
Any attempt for Canada and China to reach a solution to the latter’s tariffs on canola meal and oil imports has been put on hold until after the federal election. Meanwhile on Monday, Canada took the matter to the World Trade Organization.
Canola received additional support from gains in European rapeseed, but Malaysian palm oil and the Chicago soy complex were to the downside, limiting how the Canadian oilseed can recover. Moderate increases in crude were spilling over into the vegetable oils.
The Canadian dollar was higher on Tuesday morning, with the loonie at 70.02 U.S. cents, compared to Monday’s close of 69.84.
Approximately 15,800 contracts were traded by 8:34 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola May 579.30 up 7.10 Jul 587.90 up 5.50 Nov 589.60 up 5.90 Jan 596.90 up 6.50
