By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 27 (MarketsFarm) – ICE Futures canola contracts were steady to lower Wednesday morning, seeing some consolidation to start the day after Tuesday’s declines.
Concerns over Chinese demand remain a major bearish influence on the canola market, as traders continued to react to the latest developments of the trade spat that saw China block shipments from Viterra on Tuesday.
Chicago Board of Trade soybeans and soyoil were lower in early activity, putting additional pressure on canola.
However, the May canola contract was holding above major support around C$450 per tonne in early activity.
Expectations that the trade uncertainty will lead to a reduction in canola acres this spring were also slightly supportive.
About 3,100 canola contracts had traded as of 8:57 CDT.
Prices in Canadian dollars per metric ton at 8:57 CDT:
Price Change
Canola Mar 451.60 dn 0.10
May 459.10 dn 0.70
Jul 470.90 dn 1.10
Nov 478.90 dn 0.10
