By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 31 (MarketsFarm) – The ICE Futures canola market was stronger Tuesday morning amid reports that China agreed to remove restrictions that had severely curtailed Canadian canola imports.
The two countries reportedly reached a deal overnight, potentially ending a dispute that goes back to December 2018.
Weakness in the Canadian dollar, which was down by roughly half a cent relative to its United States counterpart, was also supportive for canola.
However, early losses in the Chicago Board of Trade soy complex put some pressure on values. The U.S. Department of Agriculture releases acreage and stocks data later in the day, and any surprises in the numbers could sway the agricultural markets.
Ongoing concerns over COVID-19 remained a bearish influence on the market, as efforts to slow the spread of the virus continued to keep world equity and commodity markets on edge.
About 20,000 canola contracts had traded as of 8:55 CDT.
Prices in Canadian dollars per metric ton at 8:55 CDT:
Canola May 471.40 up 3.90
Jul 480.80 up 4.40
Nov 488.00 up 2.10
Jan 493.00 up 1.80