ICE canola corrects lower Tuesday morning

By Phil Franz-Warkentin, Commodity News Service Canada

WINNIPEG, Dec. 11 (CNS Canada) – ICE Futures canola contracts were weaker Tuesday morning, taking back Monday’s gains.
Overnight losses in Malaysian palm oil and European rapeseed futures contributed to the early weakness in canola.
Concerns over Chinese demand also put some pressure on values. While the United States and China are reportedly making some progress on trade relations, the recent arrest of Huawei CFO Meng Wanzhou by Canadian authorities has caused Beijing to threaten “serious consequences” if a resolution is not reached. While the arrest was made on behalf of the U.S., China has reportedly retaliated by detaining a former Canadian diplomat.

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Chicago Board of Trade soybeans were stronger in early activity, providing some underlying support for canola. Recent weakness in the Canadian dollar was also supportive, although the currency was holding steady Tuesday morning.
The U.S. Department of Agriculture releases its monthly supply/demand report at 11:00 CST, and any surprises in the data could sway the canola market before the close.

About 7,500 canola contracts had traded as of 9:00 CST.

Prices in Canadian dollars per metric ton at 9:00 CST:

Price Change
Canola Jan 485.50 dn 2.10
Mar 490.90 dn 2.50
May 497.80 dn 3.00
Jul 503.80 dn 3.30
END