ICE canola drops as China announces anti-dumping investigation

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The ICE Futures canola market was sharply lower Tuesday morning in reaction to news that China plans to start an anti-dumping investigation into canola imports from Canada.

The Chinese move comes as retaliation to Canada’s announcement last week that it would impose 100 per cent tariffs on imports of Chinese electric vehicles and 25 per cent tariffs on steel and aluminum from China.

China is the largest importer of Canadian canola, accounting for nearly three-quarters of Canada’s total exports in 2023/24.

Losses in Chicago soyoil futures also weighed on the canola market as activity resumed after the Labour Day long weekend. However, soybeans were firmer in early trade.

The Canadian dollar was weaker Tuesday morning, providing some support.

About 55,100 canola contracts had traded as of 8:50 CDT.

Prices in Canadian dollars per metric ton at 8:50 CDT:

Canola            Nov   572.10    dn  42.60

Jan   584.90    dn  38.90

Mar   594.20    dn  34.60

May   599.60    dn  32.60