By Glen Hallick, Commodity News Service Canada
WINNIPEG, Jan. 23 (CNS Canada) – Canola bids were up midday Wednesday, following Tuesday’s wild ride on the markets.
A Winnipeg-based analyst said a news report from the Financial Times about United States-China trade talks sent markets downward. The report said the U.S. rebuffed a request from China to have preparatory talks ahead of next week’s trade negotiations. As the markets dropped, officials from the White House later stated this was not true and the markets began to recover.
The analyst explained canola was following soybeans on the market. But he noted the Canadian dollar and the vegetable oil market are being supportive of canola rather than soybean contracts.
“I don’t want to call (the dollar and vegetable oil) bullish, but they seem to be basing and coming off their lows,” he said, noting this is helping the crush market.
About 15,530 canola contracts were traded as of 11:00 CST.
