ICE Midday: Canola turns red

Glacier FarmMedia | MarketsFarm – The ICE Futures canola market was under pressure on Wednesday due to weakened comparable oils.

While Chicago soyoil was steady, European rapeseed was down and crude oil was lower due to a large build in United States stockpiles. There was no trading for Malaysian palm oil due to the Lunar New Year holiday.

An analyst said the main concern in the canola market is the potential tariffs on Canadian goods imported by the U.S. to be in effect on Feb. 1. The analyst also speculated whether the tariff news is already factoring into the loonie’s exchange rate.

Statistics Canada reported today that 1.015 million tonnes of canola were crushed in December, compared to 1.019 million in November and 943,302 in December 2023.

The Canadian dollar was down nearly one-quarter of a U.S. cent compared to Tuesday’s close.

About 22,400 contracts have traded at 10:11 CST. Prices in Canadian dollars per metric tonne:

Price          Change

Mar 635.50     dn  4.20

May 644.20     dn  4.60

Jul 649.80     dn  3.80

Nov 636.60     dn  2.20