By Marlo Glass, MarketsFarm
WINNIPEG, Dec. 16 (MarketsFarm) – The ICE Futures canola market was stronger at midday on Monday, supported by higher prices for Malaysian palm oil and soybeans on the Chicago Board of Trade.
One Winnipeg-based trader said historically, gains in canola lag behind that of the soybean market, as traders go short on canola and long on soybeans.
Soybeans were supported by a trade agreement between the United States and China. The yet-to-be-signed deal includes the U.S. reducing tariff rates on US$120 billion worth of Chinese imports, while maintaining a 25 per cent tariff on about US$250 billion worth of Chinese goods. Beyond that, details of the deal are scarce.
The Canadian dollar was stronger to start the week at around 76.2 U.S. cents, putting some pressure on canola values.
About 15,700 canola contracts traded as of 10:30 CST.
Prices in Canadian dollars per metric tonne at 10:30 CST:
Price Change
Canola Jan 462.50 up 1.50
Mar 471.50 up 1.50
May 479.80 up 1.30
Jul 485.90 up 1.40
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