ICE canola rising amid continued tariff uncertainty

By Phil Franz-Warkentin

Glacier FarmMedia| MarketsFarm — ICE Futures canola contracts were stronger at midday Thursday, as talk of possible easing of United States tariffs circulated the markets.

U.S. President Donald Trump posted on social media that tariffs on Mexican imports that fall under the current Canada-U.S.-Mexico Agreement (CUSMA) would be delayed until April 2, with that news giving the U.S. grains and oilseeds a boost. While Trump maintained his antagonistic stance towards Canada on social media, other U.S. officials have suggested that a reprieve was possible.

Chicago soyoil, European rapeseed and Malaysian palm oil futures were all higher on the day.

Tightening canola supplies and the need to ration demand remained supportive for canola, with the downturn earlier in the week likely seen as a buying opportunity by some end users.

The Canadian dollar was stronger at midday, putting some pressure on values.

An estimated 26,500 canola contracts traded as of 10:54 CST.

Prices in Canadian dollars per metric tonne at 10:54 CST:

Canola            May   641.50    up  9.00

Jul   650.80    up  8.60

Nov   638.50    up  8.10

Jan   646.00    up  8.20