By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 1 (CNS Canada) – ICE Futures canola contracts were stronger Friday morning, as a rally in Chicago Board of Trade soybeans provided spillover support.
Soybeans were up amid increasing optimism over trade relations between the United States and China. U.S. President Donald Trump told reporters that China had agreed to purchase five million tonnes of soybeans, describing the outcome of negotiations this week as “a fantastic sign of faith.”
Positioning ahead of the weekend, amid ideas recent losses were looking overdone, also provided some support for canola, according to participants.
However, continued strength in the Canadian dollar put some pressure on values. Ample visible supplies in the commercial pipeline and a lack of significant end-user demand also tempered the upside.
About 6,000 canola contracts had traded as of 8:55 CST.
