ICE canola midday: Trade war to spill over into canola
By Glen Hallick, MarketsFarm
WINNIPEG, August 23 (MarketsFarm) – ICE Futures canola contracts were dropping at midday Friday on news that the United States/China trade war was heating up.
“It’s a negative drag for sure,” stated a Winnipeg-based trader, but noted canola continued to be range-bound.
This morning China announced it will hike tariffs on US$75 billion of U.S. goods by five to 10 per cent in two stages, first on September 1 and then on December 15. That has matched the dates the U.S. is set to impose a 10 per cent tariff increase on US$300 billion of Chinese imports. China included U.S. soybeans, wheat and other agricultural products.
U.S. President Donald Trump was scheduled to respond to China’s move this afternoon.
“That’s got the outside markets starting to sell-off quickly. It’s not helping the canola market,” the trader commented.
He added that light trading volumes were largely due to Prairie farmers either preparing for harvest or in fields harvesting.
Also, rain for parts of the Prairies this weekend would be beneficial for canola swathing, he noted.
The Canadian dollar was lower at midday at 75.10 U.S. cents.
Approximately 4,900 canola contracts were traded as of 10:28 CDT.
Prices in Canadian dollars per metric tonne at 10:28 CDT:
Canola Nov 451.40 dn 1.70
Jan 458.80 dn 2.30
Mar 466.00 dn 2.10
May 472.70 dn 1.10