By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 15 (MarketsFarm) – Intercontinental Exchange (ICE) futures canola contracts were slightly lower Wednesday morning, as prices for European rapeseed, Malaysian palm oil and Chicago soyoil retreated.
Although canola remains relatively cheap compared to other vegetable oils, it has run into resistance on the prices charts.
The United States and China are scheduled to sign their phase one trade deal today, which is said to include China purchasing US$40 billion in U.S. agricultural goods. A spokesperson for the China National Grain and Oils Information Center said China will significantly increase their imports of U.S. soybeans, according to Reuters.
Stemming from the deal, it’s widely expected that increased soybean prices will spill over into canola.
In the meantime, there has been little progress in the Canada/China dispute.
The Canadian dollar was steady this morning at 76.54 U.S. cents after closing Tuesday at 76.56.
About 6,500 canola contracts had traded as of 8:47 CST.
Prices in Canadian dollars per metric ton at 8:47 CST:
Price Change
Canola Mar 480.20 dn 1.30
May 489.30 dn 1.10
Jul 494.00 dn 1.40
Nov 496.80 dn 0.50
