ICE canola rises for fourth session, following vegoil strength
All figures in Canadian dollars unless noted
WINNIPEG, Manitoba, Oct 21 (Reuters) -ICE canola futures closed higher Monday for a fourth straight session on spillover strength from global vegetable oil markets and signs of export demand, traders said.
* Front-month November canola RSX4 settled up $4 at $620.10 per metric ton after rising to $629.20, the contract's highest since Oct. 8.
* Most-active January canola RSF5 ended up $6.40 at $630.90 a ton after reaching $637.10.
* Gains were progressively stronger in later months.
* Recent sessions have seen much influence from speculation about the possible impact of the Canada-China trade spat over tariffs on some Chinese goods. China has launched an anti-dumping investigation into Canadian canola.
* "There are a lot of questions right now," said canola market analyst Jon Driedger of LeftField Commodity Research. "There are so many unknowns." Those include whether or not China imposes tariffs or restrictions at all, when it might take any actions, and whether penalties would affect canola seed, oil and meal, or just be aimed at seed, Driedger said.
* Speculation about possible future Chinese anti-dumping actions against Canadian canola have caused a number of buyers in China to bring forward sales, creating a surge of canola shipments from Canada. Canadian export volumes have also been helped by good, dry harvest weather that has seen most crops in the bin well before medium and long-term averages.
* The Canadian government's Friday night decision to allow for some relaxing of tariffs on Chinese-made electrical vehicles and tariffs on Chinese-made steel and aluminum pressured Chinese rapeseed meal CRSMcv1 futures, which fell 4.6% on Monday. China's anti-dumping investigation could be affected by any lightening of Canada's tariffs on Chinese products, market participants speculated.
* Canola trade was broadly in line with the global vegoil complex, with Malaysian palm oil futures FCPOc3 up 1.03% and crude oil CLc1 higher. Canola competes with vegoils for both food and bioenergy markets, which also makes it significantly affected by crude. POI/
* On the Chicago Board of Trade, soybean futures SX24 settled up 11 U.S. cents, or 1.13%, at US$9.81 a bushel and CBOT December soyoil BOZ24 ended up 0.57 U.S. cent, or 1.36%, at 42.39 U.S. cents per pound. SOY/C
Reporting by Ed White; Editing by Tasim Zahid
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
