ICE Canada Morning Comment: Trump tariffs weighing on canola
Tightening supply situation limiting oilseed's losses
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were lower on Monday morning pulled down by the tariffs United States President Donald Trump said will take effect on Tuesday.
Trump will slap a 25 per cent levy on all goods the U.S. imports from Canada and Mexico, but with a 10 per cent tariff on energy products. The Canadian government will counter with a 25 per cent tariff on imports from the U.S., with some starting immediately with more imports to be added within three weeks.
Additional pressure on canola came from declines in Chicago soymeal, while soybeans were narrowly mixed. However, stronger crude oil prices bolstered the vegetable oils. That saw sharp upswings in Chicago soyoil, plus moderate gains European rapeseed and Malaysian palm oil, which tempered the losses in canola.
The Canadian oilseed continued to face a tightening supply situation due to strong canola exports and domestic use.
The Canadian dollar was weaker on Monday morning, with the loonie sliding to 68.21 U.S. cents compared to Friday’s close of 69.04.
Approximately 20,100 contracts were traded by 8:36 CST and prices in Canadian dollars per metric tonne were:
Price Change Canola Mar 632.50 dn 5.60 May 640.20 dn 5.00 Jul 646.50 dn 5.20 Nov 634.60 dn 4.00
