ICE canola drops on Trump trade talk

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was sharply weaker Tuesday morning, dropping to fresh two-and-a-half month lows as participants reacted to the latest trade rhetoric from United States President-elect Donald Trump.

Trump posted to his Truth Social platform Monday afternoon that he plans on imposing 25 per cent tariffs on all imports from Canada and Mexico when he takes office on Jan. 20.

Chart-based selling contributed to the declines, with some stops hit on the way down as speculators added to their large short positions.

However, resulting weakness in the Canadian dollar provided some support. Gains in Chicago soyoil and tightening supply projections also underpinned the canola market.

About 42,800 canola contracts had traded as of 8:36 CST.

Prices in Canadian dollars per metric ton at 8:36 CST:

Canola            Jan   574.50    dn  18.50

Mar   587.10    dn  18.80

May   596.80    dn  17.80

Jul   601.20    dn  16.20