ICE Canada Morning Comment: Canola falls back
Tariff issues hovering over market
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures fell back Friday morning in a corrective move.
Speculation of possible Chinese tariffs on Canadian canola as well as those that could be imposed in 2025 by the Trump administration loomed over the market.
As losses in crude oil weighed on vegetable oil values, pressure on canola also came from declines in the Chicago soy complex. However, support came from another round of contract highs in Malaysian palm oil. European rapeseed was mixed.
While the Canadian Grain Commission reported weekly canola exports dropping by a third to about 204,000 tonnes, year-to-date shipments advanced to nearly 3.10 million tonnes compared to 1.58 million a year ago.
There have been concerns in the trade that Canada’s canola crop could come in well below the approximately 19 million tonnes estimated by Statistics Canada. The federal agency is scheduled to release its next production report on Dec. 5.
The Canadian dollar was lower on Friday morning, falling to 71.90 U.S. cents compared to Thursday’s close of 72.12.
Approximately 14,150 contracts were traded by 8:46 CST and prices in Canadian dollars per metric tonne were:
Price Change Canola Jan 653.60 dn 6.20 Mar 666.40 dn 6.00 May 675.30 dn 6.10 Jul 678.10 dn 7.80
