ICE canola weighed down by tariff threat Friday morning

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was weaker Friday morning, with uncertainty over looming tariffs in the United States behind some of the selling pressure.

U.S. President Donald Trump reiterated his calls for tariffs on Canada and Mexico while speaking to reporters on Thursday. The U.S. is a major importer of both canola oil and meal from Canada. What comes from Trump’s tariff threats and Canada’s eventual retaliation remains to be seen.

The Canadian dollar was sharply lower in response to the trade war worries, helping temper the losses in canola.

Gains in Chicago soyoil and tightening supply projections were also supportive.

Canada exported 206,000 tonnes of canola during the week ended Jan. 26, according to the latest Canadian Grain Commission data. That was in line with what moved the previous week, with crop-year-to-date exports of 5.3 million tonnes roughly double the year-ago pace.

About 23,700 canola contracts had traded as of 8:47 CST.

Prices in Canadian dollars per metric ton at 8:47 CST:

Canola            Mar   632.70    dn  7.50

May   640.40    dn  8.00

Jul   646.10    dn  8.00

Nov   635.80    dn  5.10