ICE Canola Midday: Prices weaker due to pressure from soy complex
MacAuley reportedly heading to China
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were weaker at midday Tuesday, getting pressure from sharp losses in the Chicago soy complex. Trading in the Canadian oilseed resumed after Remembrance Day.
Chicago soybeans and soyoil were down hard while soymeal clung to small increases. Additional pressure came from declines in European rapeseed and Malaysian palm oil. Crude oil was relatively steady, offering little direction to the vegetable oils.
Speculation that China was going to impose punitive measures against Canadian canola did not come to fruition over the long weekend. Unconfirmed reports said Canadian Minister of Agriculture Lawrence MacAulay was heading to China this week, apparently to discuss the canola trade between the two countries.
Meanwhile, the federal government has imposed binding arbitration in the labour disputes at the ports of Vancouver and Montreal. While the work stoppages didn’t affect exports of canola, they did hamper shipments of canola oil out of Vancouver.
By late Tuesday morning, the Canadian dollar fell to 71.70 U.S. cents compared to Friday’s close of 71.88.
Approximately 41,400 canola contracts were traded as of 10:18 am CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Jan 646.60 dn 18.50 Mar 659.90 dn 18.00 May 668.80 dn 17.30 Jul 672.00 dn 17.50
