ICE canola continues lower Wednesday morning

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The ICE Futures canola market was weaker Wednesday morning, as traders continued to react to a mounting trade dispute with China.

China announced Tuesday that it would initiate an anti-dumping investigation into Canadian canola imports – a move that was largely seen as retaliation to Canada’s recent announcement that it would impose tariffs on Chinese electric vehicles, steel and aluminum.

The losses were more subdued on Wednesday, with trade flow not yet disrupted. One analyst expected nearby Chinese export demand may pick up ahead of any possible tariffs.

The Chicago soy complex was mostly higher in early activity, providing some support for canola.

The Canadian dollar was steady Wednesday morning.

About 14,600 canola contracts had traded as of 8:45 CDT.

Prices in Canadian dollars per metric ton at 8:45 CDT:

Canola            Nov   582.60    dn  8.30

Jan   594.70    dn  8.30

Mar   605.20    dn  7.50

May   613.80    dn  6.20