ICE Canola Midday: Looming tariffs pulls down values
Extremely difficult to make accurate prediction
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were lower at late Monday morning, as uncertainty over United States tariffs set to be imposed next week weighed on values.
“I expect a big knee jerk reaction on Mar. 4,” an analyst stated, stressing that’s if the tariffs go ahead with Canada retaliating.
Should that be the case next week, he said any support Canadian canola is getting from its tight supplies would be “wiped away.”
However, the analyst stressed there is so much political uncertainty that it’s extremely difficult to make an accurate prediction regarding oilseeds and grains with any degree of confidence.
Meanwhile, canola also felt the pressure from declines in the Chicago soy complex, European rapeseed and sharp losses in Malaysian palm oil. Crude oil was a pinch higher, which helped to underpin the vegetable oils.
The Canadian dollar stepped back at mid-session Monday, with the loonie at 70.28 U.S. cents compared to Friday close of 70.39.
First notice day for March futures is set for Feb. 28.
Approximately 28,350 canola contracts were traded as of 10:30 am CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Mar 659.00 dn 8.80 May 670.10 dn 9.60 Jul 675.90 dn 10.40 Nov 658.60 dn 8.40
