ICE Canola Midday: Grinding lower
Chinese tariffs weighing on canola
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were slightly lower by late Friday morning, as China’s tariffs on its imports of Canadian canola meal and oil continued to weigh on values.
An analyst said canola and the grain markets in general will likely be “in limbo” until the United States Department of Agriculture issues its 2025/26 planting projections on March 31, along with whatever trade action the Trump administration pursues come April 2.
The analyst noted that the spread between canola and European rapeseed is very wide, up to C$200 per tonne.
“It’s so cheap, it’s crazy,” he stated, suggesting canola exports to the European Union should reach one million tonnes, possibly as much as 1.25 million.
Canola was getting additional pressure on losses in Chicago soybeans and soyoil, as well as Malaysian palm oil. The declines were tempered by increases in European rapeseed and Chicago soymeal. Crude was narrowly mixed and provided little direction to the vegetable oils.
The Canadian Grain Commission reported year-to-date canola exports of nearly 6.52 million tonnes, 77 per cent more than a year ago.
The Canadian dollar was virtually unchanged by mid-session Friday with the loonie at 69.68 U.S. cents.
Approximately 26,100 canola contracts were traded as of 10:33 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola May 571.40 dn 1.30 Jul 582.20 dn 2.00 Nov 588.00 dn 0.80 Jan 593.70 dn 2.00
