ICE canola turns higher amid trade uncertainty

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger at midday Monday, recovering from earlier losses as uncertainty over incoming United States tariffs kept global markets on edge.

U.S. tariffs on Canadian imports set to come into effect on Tuesday would likely alter the flow of Canadian canola oil and meal, which weighed heavily on canola prices in overnight trade. However, news Monday morning that Mexico was granted a month-long reprieve on tariffs brought some optimism into the canola market. Prime Minister Justin Trudeau is expected to speak with U.S. President Donald Trump later this afternoon. The two leaders already spoke once this morning, and Canada has announced retaliatory tariffs against the U.S.

Chicago soyoil and soybeans were higher at midday, providing some support. European rapeseed and Malaysian palm futures were also stronger.

Weakness in the Canadian dollar, tightening supply projections and the need to ration demand also underpinned the canola market.

An estimated 39,200 canola contracts traded as of 10:57 CST.

Prices in Canadian dollars per metric tonne at 10:57 CST:

Canola            Mar   638.50    up  0.40

May   646.10    up  0.90

Jul   652.40    up  0.70

Nov   640.50    up  1.90