ICE Midday: Chinese tariffs sink canola

Glacier FarmMedia | MarketsFarm – The ICE Futures canola market plummeted on Monday after China announced late Friday it will place 100 per cent tariffs on Canadian canola oil, meal and peas, as well as a 25 per cent duty on Canadian aquatic products and pork. The tariffs are retaliation for those placed by Canada on Chinese-made electric vehicles, steel and aluminum last year.

Chicago soyoil, European rapeseed and Malaysian palm oil were also down. Meanwhile, crude oil was lower due to tariff uncertainty and planned output hikes from OPEC+.

One analyst said since canola seed was not tariffed, there may still be room for China to change its mind. However, another analyst predicted new levies on canola seed could come by next week.

The Canadian dollar was down one-quarter of a United States cent compared to Friday’s close.

About 71,000 contracts have traded at 10:20 CDT. Prices in Canadian dollars per metric tonne:

Price          Change

May 605.00     dn 40.00

Jul 614.10     dn 39.80

Nov 617.20     dn 21.80

Jan 625.80     dn 20.70