ICE canola higher Thursday morning amid trade uncertainty

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was posting solid gains Thursday morning amid ongoing uncertainty over trade policies in the United States.

After U.S. President Donald Trump hinted Wednesday that the broad 25 per cent tariffs on all imports from Canada and Mexico set to come into effect next week could be pushed back another month, Trump posted on social media Thursday morning that tariffs “will, indeed, go into effect, as scheduled” on March 4.

Chicago soyoil and European rapeseed futures were both higher, providing spillover support for canola.

The May contract was trading above its 20-day moving average, with most major technical indicators still pointing higher despite losses seen earlier in the week.

Tightening supplies and the need to ration demand also underpinned the canola market.

About 12,900 canola contracts had traded as of 8:39 CST.

Prices in Canadian dollars per metric ton at 8:39 CST:

Canola            Mar   655.00    up  6.10

May   668.80    up  4.40

Jul   674.30    up  4.00

Nov   656.90    up  3.80