ICE canola up as tariffs postponed

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger at midday Tuesday, hitting its highest levels since November as support came from news the United States would postpone imposing tariffs on Canadian imports for at least a month.

U.S. tariffs and Canadian retaliatory measures had been set to come into effect on Feb. 4, which would have likely cut into U.S. demand for Canadian canola oil and meal. However, an agreement to pause the tariffs for 30 days was reached late-Monday.

Gains in Chicago soybeans also provided some spillover support for canola, although soyoil was sharply lower as the vegetable oil had found strength recently on expectations for increased demand if less Canadian canola oil was coming into the U.S.

Strength in the Canadian dollar, which was up by roughly half a cent relative to its U.S. counterpart at midday, also tempered the gains in canola.

An estimated 35,300 canola contracts traded as of 10:52 CST.

Prices in Canadian dollars per metric tonne at 10:52 CST:

Canola            Mar   647.20    up  6.70

May   654.10    up  6.50

Jul   658.80    up  5.20

Nov   643.00    up  0.50