ICE Canola Midday: Tariff threat encouraging forward buying
Trumps says tariffs are coming March 4
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures edged higher late Thursday morning on concerns over forthcoming tariffs to be imposed by the Trump administration.
“The tariff story is still the dominant issue,” an analyst stressed, suggesting there could be an eleventh-hour deal on March 3 to further postpone the levies.
However, United States President Donald Trump reiterated Thursday morning he will slap 25 per cent tariffs on most good imported from Canada and Mexico come March 4. Trump suggested yesterday that his tariffs could be pushed back to April 2.
Canola was also getting support from upticks in Chicago soybeans and soyoil as well European rapeseed. Chicago soymeal was easing back but Malaysian palm oil was down hard. Gains in crude oil were spilling over into the vegetable oils.
Statistics Canada reported 2.17 million tonnes of canola were delivered in January, up from the 1.58 million the previous January. StatCan also said 1.01 million tonnes of canola were crushed in January, compared to nearly 936,600 a year ago.
The Canadian dollar was weaker at mid-session Thursday due to a stronger U.S. dollar. The loonie dropped to 69.28 U.S. cents compared to Wednesday’s close of 69.74.
Approximately 21,950 canola contracts were traded as of 10:34 am CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Mar 652.20 up 3.30 May 664.70 up 0.30 Jul 671.40 up 1.10 Nov 654.30 up 1.20
