ICE Canadian canola futures firmed on Monday on hopes for a lift in export demand as rising trade tensions between the United States and China rattled US markets. Gains were capped by spillover from lower Chicago soyabean prices and hedge-related selling as some farmers liquidated canola supplies on the uptick in prices.
May canola rose $2.10 to settle at $524.80 per tonne. July canola gained $2 to $530.40 while November added $1.90 to $518.50 a tonne. Chicago Board of Trade soyabean futures climbed early in Monday's session on follow-through from a bullish government plantings estimate, but turned lower on large stocks and rising trade tensions.
China announced higher tariffs on a long list of US goods over the weekend, including pork and ethanol. A disruption of US oilseed exports could benefit Canadian shipments of canola as China seeks a replacement, a trader said.
NYSE MATIF May rapeseed and Malaysian May crude palm oil also rose on Monday. The Canadian dollar firmed against the greenback on Monday as the greenback broadly fell and investors weighed the possible repercussions of an escalating trade dispute between the world's biggest economies.
Comments
Comments are closed.