By Glen Hallick, MarketsFarm
WINNIPEG, March 26 (MarketsFarm) – ICE Futures Canola contracts were down Tuesday morning, following the announcement that Viterra Inc. is now the second Canadian grain company to lose its ability to export canola to China.
The May canola contract was down $6.80 to $449.90 per tonne in early trading.
As with Richardson International earlier this month, Viterra had its export registration revoked by China on the grounds of hazardous pests allegedly found in canola shipments.
To date, China has yet to provide any evidence to support its claim there were hazardous pests found in a shipment from Richardson International. Added to that, the Canadian Food Inspection Agency retested Richardson’s canola and didn’t find any such pests.
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China warned earlier this month that it might take action against more imports from Canada.
Last week the economic superpower ceased purchasing any canola from Canada. Only previous contracts were being fulfilled.
It’s widely believed China’s action stem from an ongoing dispute over the arrest of a Huawei executive by Canadian authorities in December.
About 6,600 canola contracts had traded as of 8:24 CDT.
Prices in Canadian dollars per metric ton at 8:24 CDT:
Price Change
Canola May 449.90 dn 6.80
Jul 458.40 dn 6.80
Nov 471.20 dn 6.60
Jan 478.90 dn 5.70
