ICE Canada Morning Comment: Facing another day of losses
Chinese, U.S. tariff threats weaken Canadian canola
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were turning lower on Friday morning after coming out of the overnight session with gains.
Over the course of this week, the May canola contract has lost $78.10 per tonne largely due to China threatening to slap 100 per cent tariffs on its imports of Canadian canola oil and meal. Ongoing uncertainty over United States levies added to canola’s woes.
The Canadian oilseed was getting support from upticks in Chicago soybeans and soyoil, along with Malaysian palm oil. Canola’s increases were tempered by declines in European rapeseed and Chicago soymeal. Small gains in crude oil lent support to the vegetable oils.
The Canadian Grain Commission reported canola exports for the week ended March 9 of 197,200 tonnes were almost 87 per cent higher than the previous week. That brought year-to-date canola exports to more than 6.32 million tonnes, compared to around 3.44 million a year ago.
Newly minted federal Liberal leader Mark Carney will be sworn in this morning as Canada’s next Prime Minister, with reports stating Dominic LeBlanc is to become the new minister for international trade.
The Canadian dollar was relatively steady on Friday morning, with the loonie at 69.45 U.S. cents, compared to Thursday’s close of 69.40.
Approximately 9,550 contracts were traded by 8:38 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola May 566.30 dn 0.60 Jul 579.20 dn 0.70 Nov 588.40 dn 1.40 Jan 597.10 dn 0.50
