ICE canola down as tweet optimism fades

By Ashley Robinson, Commodity News Service Canada
WINNIPEG, Dec. 31, 2018 (CNS Canada) – ICE Futures canola contracts were down Monday at midday, shrugging off earlier positivity in the market following a weekend tweet from U.S. President Donald Trump where he said he had talked to Chinese President Xi Jinping.
Chicago Board of Trade soybean and meal contracts are weaker, while soyoil contracts are stronger. Many said that Trump had just been trying to spin positive news with his China tweet to try and make the markets end on a high note for the year.

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There is concern with traders that demand for Canadian canola is softening. According to a Winnipeg-based trader, while the canola crush margin improved on Friday there hasn’t been any decent buying happening.
“You would think there’d be decent buying on the crushers. But the other side of it is the theoretical crush can be good but if the outlet for the products isn’t there then,” he said.
Trade has been choppy today and the trader suspects there could be a sell-off in the markets before close.
The markets will be closed tomorrow for the New Year’s Day holiday.