ICE Canada Morning Comment: Starting with another round of losses
USDA report at 11 am CDT
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures continued lower on Tuesday morning, although the losses were not as severe as those yesterday. Nevertheless, the May contract pushed below its support level of C$600 per tonne.
Canola was still dealing with China’s 100 per cent tariffs on the oil and meal set for March 20. However, the seed has been omitted from the punitive measures.
Added to that is the uncertainty of the United States market with President Donald Trump’s on again, off again tariffs. Also, there has yet to be any statement from the U.S. Department of Agriculture regarding the future of its biofuel tax credits and whether canola will be reinstated or not.
As well, the canola market will be keeping an eye on the USDA’s supply and demand estimates due at 11 am CDT and how the report affects the Chicago soy complex.
The latter was slightly higher, but European rapeseed and Malaysian palm oil slipped back. Gains in crude oil were helping to ease the pressure on the vegetable oils.
The Canadian dollar nudged upward on Tuesday morning, with the loonie at 69.39 U.S. cents compared to Monday’s close of 69.30.
Approximately 24,650 contracts were traded by 8:35 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola May 589.30 dn 15.70 Jul 602.60 dn 15.20 Nov 611.80 dn 8.80 Jan 621.00 dn 8.10
