By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 13 (MarketsFarm) – ICE Futures canola contracts were steady to higher at midday Friday, as the announcement of a trade deal between the United States and China failed to rally the markets as expected, according to a Winnipeg-based trader.
Although China acknowledged it has an agreement in principle with the U.S., there have been scant details about what’s in the Phase One deal, the trader noted.
It is clear the deal will cancel Sunday’s planned tariff hike by the U.S. Also, that China has agreed to purchase an amount of U.S. agricultural goods. However, there hasn’t been much else to go on, he explained.
That said, canola was getting a little bit of support from Chicago soyoil, the trader commented.
“Unfortunately canola continues to be the lagger,” he said, noting canola continues to slowly respond to increases in soyoil.
The Canadian dollar was slightly lower at 75.75 U.S. cents, compared to Thursday’s close of 75.86.
Approximately 21,800 canola contracts were traded as of 10:31 CST.
Prices in Canadian dollars per metric tonne at 10:31 CST:
Canola Jan 459.40 up 0.30
Mar 468.20 unchanged
May 476.90 up 0.70
Jul 483.30 up 1.30
Commodity Future Prices
Prices are in Canadian dollars per metric ton