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ICE canola futures sag as China blocks shipments from Richardson

Published 2019-03-05, 04:19 p/m
ICE canola futures sag as China blocks shipments from Richardson
USD/CAD
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ICE
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March 5 (Reuters) - ICE (NYSE:ICE) May RSK9 canola futures fell on Tuesday, pressured by news that China had canceled Canadian agribusiness Richardson International Ltd's registration to ship canola to China, traders said.

* A lasting block on Richardson's canola exports would be a headache for Canada's biggest grain handler and could hurt the Canadian economy. China's move comes amid heightened tensions between the two countries in a dispute over trade and telecoms technology that has ensnared the chief financial officer of the world's largest telecommunications equipment maker, Huawei Technologies Ltd HWT.UL , who faces U.S. criminal charges.

* Most-active May canola RSK9 ended down $5 at $457.80 per tonne but stayed above a contract low set on Monday at $453.90.

* July canola RSN9 fell $4.80 to settle at $466.40.

* The May-July canola spread RSK9-N9 traded 2,604 times between $8.30 and $8.80, premium July.

* Chicago May soybeans SK9 settled down 2-1/4 U.S. cents at US$9.13-3/4 per bushel on uncertainty about prospects for a U.S.-China trade deal. Paris Matif May rapeseed futures COMK9 rose 0.57 percent and Malaysian May palm oil futures 1FCPOK9 rose 0.56 percent.

* The Canadian dollar CAD= was trading at $1.3351 to the U.S. dollar, or 74.90 U.S. cents, at 3:05 p.m. CST (2105 GMT).

* The Canadian currency weakened to its lowest level in more than five weeks against its U.S. counterpart, one day before an interest rate decision by the Bank of Canada and as China dealt a potential blow to the Canadian economy.

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