By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 3 (MarketsFarm) – Intercontinental Exchange (ICE) futures canola contracts were higher Tuesday morning, regaining some of the losses incurred yesterday, although bids remain range-bound.
Favourable soybean crop conditions in South America have weighed on values, with Brazil on pace for a record 123.0 million tonnes and Argentina with 55.0 million tonnes.
Meanwhile dry conditions for Australia’s canola crop has provided some support. The Australian government lowered its 2019/20 production estimate from 2.3 million tonnes to 2.1 million. MarketsFarm projected 1.9 million tonnes.
United States President Donald Trump indicated that a trade deal with China may not be signed until after the 2020 U.S. presidential election. However, U.S. soybean exports are almost 3 million tonnes ahead of last year’s pace, largely due to demand from China.
The Canadian dollar was slightly lower this morning at 75.13 U.S. cents after closing Monday at 75.20.
About 5,600 canola contracts had traded as of 8:36 CST.
Prices in Canadian dollars per metric ton at 8:36 CST:
Canola Jan 454.80 up 2.70
Mar 464.10 up 2.80
May 472.30 up 2.80
Jul 478.70 up 3.00