By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 6 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Friday, recovering from earlier declines.
Lingering winter conditions across much of Western Canada have some analysts reconsidering acreage projections for the spring, with a later seeding start possibly shifting some intended canola acres into barley, oats, or soybeans.
Bullish technical signals contributed to the gains in canola, keeping speculators on the buy side as the charts remain in an uptrend, according to a broker.
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The trade dispute between China and the United States continued to overhang the grains and oilseeds, with the latest developments including a threat from U.S. President Donald Trump of an additional US$100 billion in tariffs on Chinese goods. Chicago Board of Trade soybeans were weaker as a result, but were trading well off their overnight lows by midday.
While the trade war is still all talk, the canola market is caught somewhat in the middle with losses in U.S. soybean prices countered by the possibility of increased demand for alternative oilseeds.
About 16,000 canola contracts had traded as of 10:57 CDT, with intermonth spreading a feature.
