ICE canola continues lower amid trade uncertainty

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was weaker Wednesday morning, as participants remained uncertain over what tariffs on Canadian imports proposed by United States President-elect Donald Trump will mean for trade flows.

The U.S. accounts for over 90 per cent of Canada’s canola oil exports.

Losses in Chicago soyoil and European rapeseed added to the softer tone in canola. However, Malaysian palm oil was higher.

Ideas that canola was looking oversold helped temper the declines, with prices holding above Tuesday’s lows in early activity.

U.S. markets will be closed Thursday for Thanksgiving while canola will trade its usual hours.

About 18,600 canola contracts had traded as of 8:45 CST.

Prices in Canadian dollars per metric ton at 8:45 CST:

Canola            Jan   571.30    dn  9.00

Mar   585.50    dn  8.70

May   597.10    dn  8.40

Jul   600.70    dn  9.30