ICE Canola Midday: Trade getting tired of tariff flip-flops
Canola down, but relatively stronger compared to product values
By Glen Hallick
Glacier Farm Media MarketsFarm – Although Intercontinental Exchange canola futures were lower late Friday morning, a broker said the Canadian oilseed was relatively stronger compared to the products, which were down more. He added the losses in canola were “a routine correction.”
The Chicago soy complex was falling back, including sharp losses in the soyoil. European rapeseed was also pulling back, but there were gains in Malaysian palm oil. Modest losses in crude oil added more pressure on the vegetable oils.
The broker stated the trade is becoming fed up with the flip-flopping over the Trump tariff threats. Reports said United States President Donald Trump suggested there could be another delay, this one to April.
Another issue the broker noted was the uncertainty over biofuel tax credits in the U.S. Changes were made in January that excluded canola, and the Trump administration has yet to indicate what action they will take towards the credit program.
The Canadian dollar was virtually unchanged at mid-session Friday with the loonie at 69.33 U.S. cents.
Approximately 19,700 canola contracts were traded as of 10:34 am CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Mar 635.80 dn 6.40 May 652.20 dn 5.90 Jul 660.10 dn 4.80 Nov 644.50 dn 4.50
