By Marlo Glass, MarketsFarm
WINNIPEG, March 31 – ICE Futures canola contracts were higher at midday Tuesday, boosted by an announcement that China will resume importing Canadian canola.
However, one Winnipeg-based trader cautioned that the fresh news is “short in details” at this point.
The trader also believed the recent rally in canola prices before the announcement was in anticipation of this news.
Short covering has also been a feature in recent trading, which was supportive of canola values.
The Canadian dollar kept pressure on canola prices. The dollar was under 70 U.S. cents to start the day, but had risen to 70.55 cents at midday.
The trader noted that exports have been strong for the marketing
Approximately 30,500 canola contracts were traded as of 10:40 CDT.
Prices in Canadian dollars per metric tonne at 10:40 CDT:
Canola May 469.50 up 2.00
Jul 478.70 up 2.30
Nov 485.90 unch
Jan 492.30 up 1.10