North American Grain and Oilseed Review: Reduced tariff threat spurs increases
Trump takes power on MLK Jr. Day
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures got a boost on Monday, after United States President Donald Trump indicated he would not slap tariffs on U.S. imports from Canada and elsewhere.
Reports said the Trump administration will order federal agencies to study the country’s trade deficits with Canada, Mexico, China and other countries.
However, uncertainty over U.S. biofuel policies, which excluded canola from recent changes, still throws a dark cloud over Canadian exports of canola oil to the U.S.
The current political and economic climate in Canada and the U.S. is reportedly a big reason why Federated Co-Op has delayed its plan to build a biodiesel facility in Regina.
Support for canola came from gains in European rapeseed, while Malaysian palm oil was relatively steady. Losses in crude oil weighed on vegetable oil values.
The Canadian dollar rose sharply Monday afternoon as its U.S. counterpart nosedived. The loonie jumped to 69.93 U.S. cents compared to Friday’s close of 69.28.
There were 36,718 contracts traded on Monday, compared to 55,903 on Friday. Spreading accounted for 23,802 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Mar 631.90 up 15.90 May 639.50 up 14.00 Jul 645.00 up 11.20 Nov 629.60 up 4.00
The markets in the United States were closed on Monday to mark Martin Luther King Jr. Day. Trading is scheduled to resume this evening.
Donald Trump was sworn in as the 47th President of the United States. Reports said the Trump administration won’t immediately impose tariffs on U.S. imports from Canada, Mexico and China. Rather, several federal agencies will study U.S. trade deficits with those countries and others.
Trump said he spoke with Chinese President Xi Jinping, discussing trade issues between their countries.
China has continued to shift its soybean purchases from the U.S. to Brazil, as the latter’s 2024/25 harvest begins to ramp up. However, combining has been slowed by wet conditions in areas of the country.
A sharp drop in the U.S. dollar on Monday has made its exports more attractive.
Nearly all of the continental U.S. is forecast to get near to below normal temperatures over the coming 10 days.
The U.S. Commodity Futures Trading Commission issued its Commitment of Traders report citing the spec funds now have a net long in soybeans of 34,833 contracts as of Jan. 14, for a flip of 63,445.
The CFTC said the specs expanded their net long in corn by 38,882 contracts now at 292,228. The commercials upped their net short by 52,432 at 540,764.
In wheat, the spec funds added 5,756 contracts to their short at 94,393. For Kansas City wheat, specs upped their net short by 5,748 contracts at 37,606.
The U.S. Department of Agriculture has postponed its weekly reports by one day, with the export inspections report set for Tuesday and the export sales report on Friday.
The Buenos Aires Grain Exchange reported Argentina’s soybeans rated 32 per cent good to excellent, dropping from 49 per cent. The exchange reduced its rating on Argentine corn to 39 per cent good to excellent from 42.
