By Glen Hallick, MarketsFarm
WINNIPEG, March 3 (MarketsFarm) – ICE Futures canola contracts were higher on Tuesday, continuing the rebound that began yesterday, albeit at a slower pace.
“The markets would like to be looking ahead to spring, but unfortunately the stock markets and the coronavirus are still dominating for now. That’s keeping any rebound rallies a little bit subdued,” commented a Winnipeg-based trader.
That has encouraged nervousness in the commodities as to how well the stocks are able to hang on to any further rebounds, he said.
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What has the trader concerned is the United States Federal Reserve took the rare measure of an emergency cut to its key interest rate Tuesday morning. The half-point cut had yet to garner any reaction from the stock markets. Should there be a sell-off in the stocks, the grains and oilseeds will follow suit, he said.
The trader also noted that canola finished about C$5 ahead of the U.S. markets on Monday. However canola was C$4 weaker than the U.S. markets today, in what he called “a rebalancing process.”
So far today, the Canadian dollar was firm at 74.93 U.S. cents, only a pinch higher from Monday’s close of 74.87.
Approximately 10,600 canola contracts were traded as of 10:32 CST.
Prices in Canadian dollars per metric tonne at 10:32 CST:
Price Change
Canola May 464.70 up 1.70
Nov 482.10 up 1.90
Jan 488.50 up 1.60
