Global Markets: China takes aim at Canadian canola

By Glen Hallick

Glacier Farm Media MarketsFarm – The following is a glance at the news moving markets in Canada and globally.

• China announced on Tuesday that it will launch an anti-dumping investigation into canola imports and some chemical imports from Canada. The move comes after Canada said it was imposing a 100 per cent tariff on imports of Chinese electric vehicles as well as a 25 per cent tariff on imports of Chinese steel and aluminum. China is by far Canada’s largest canola export customer, having purchased 4.92 million tonnes in the 2023/24 marketing year. China’s move generated a sharp decline in canola futures on the Intercontinental Exchange.

• Analysts said on Tuesday that the Bank of Canada will likely cut its key interest rate tomorrow. The reduction is expected despite improved economic growth in the second quarter at 2.1 per cent. However, analysts pointed out the real gross domestic product shrank on a per-person basis. The BoC’s current rate is 4.5 per cent.

• A pair of Russian ballistic missiles struck the Ukraine’s Military Institute of Communications in Poltava on Tuesday, killing 41 people and injuring more than 180 others. Reports said it marked the deadliest Russia missile attack this year. As well Russian President Vladimir Putin claimed on Monday that the Russian military’s offensive in eastern Ukraine smashed through defensive lines, capturing more territory at a much quicker pace.

• A panel of the Supreme Court of Brazil upheld on Monday its top judge’s decision to block social media platform X. Reuters said the chief judge, Alexandre de Moraes, ruled that X permitted posts of hate messages and falsehoods about Brazil’s voting system that undermined the country’s democracy. Elon Musk, the owner of X, announced his satellite internet provider Starlink would not enforce the judge’s decision. A previous court ruling froze Starlink’s assets in Brazil.