By Glen Hallick, Commodity News Service Canada
WINNIPEG, Feb. 25 (CNS Canada) – ICE Futures canola contracts were trading either side of steady Monday morning, influenced by progress made in the United States/China trade dispute and tempered by soft export demand for Canadian canola.
Canola futures for this morning were mostly up by less than C$1 per tonne, with the May contract at C$481.50 per tonne.
Canola will likely see spillover from other markets as China agreed to purchase US$1.2 trillion in U.S. goods. Part of the deal includes China purchasing 10 million tonnes of U.S. soybeans.
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In return, the U.S. will extend the deadline to reach a deal with China to resolve their trade war to at least to the end of March. The U.S. had been prepared to hike tariffs on Chinese imports from 10 per cent to 25 per cent on March 1.
The soybean complex on the Chicago Board of Trade was up Monday morning, providing support for canola. The May soybean contract gained seven cents to US$9.31 per bushel.
The Canadian dollar was up slightly Monday morning at 76.01 U.S. cents after closing Friday at 75.91 U.S. cents.
About 5,600 canola contracts had traded as of 8:51 CST.
Prices in Canadian dollars per metric ton at 8:51 CST:
Price Change
Canola Mar 474.10 up 0.40
May 481.50 up 0.10
Jul 489.20 dn 0.20
Nov 493.20 dn 0.80
