By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 3 (CNS Canada) – ICE Futures canola contracts were posting small gains at midday Monday, lagging the Chicago Board of Trade soy complex to the upside as strength in the Canadian dollar cut into crush margins.
Soybean and soyoil futures were both up sharply on news that the United States and China had agreed to a trade truce over the weekend. While there was little concrete information, reports of an agreement to delay additional tariffs for 90 days and tweets from U.S. President Donald Trump were enough to support the Chicago futures.
However, the activity in the financial markets also caused the Canadian dollar to climb higher relative to its U.S. counterpart. The rising currency weighed on crush margins and put some pressure on canola.
Large visible supplies and a lack of significant end user demand also put some pressure on canola, according to a broker.
About 17,000 canola contracts traded as of 10:52 CST.
