Canola trading on the Intercontinental Exchange will continue to be range-bound if things stay the same regarding Canada’s trade war with China.
The January contract has stayed between C$620 and C$640 per tonne since Oct. 7 in all trading sessions but one.
Tony Tryhuk of RBC Dominion Securities in Winnipeg says any piece of news would break canola out of its current range.
Tryhuk describes the Canadian government as “between a rock and a hard place” after a Chinese official said earlier this month that canola tariffs would be dropped if Canada dropped its levy on Chinese electric vehicles.
The matter has driven a wedge between the Canadian canola and automotive industries with the lack of progress frustrating both sides.
However, Tryhuk believes a deal will get done eventually.
