By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were weaker late Tuesday morning, pulled lower by the threat of a 25 per cent tariff on Canadian and Mexican goods imported into the United States.
President-elect Donald Trump stated on social media he will impose the tariff hike when he’s sworn in on Jan. 20.
An analyst said Trump’s tariff talk is likely a negotiation tactic and the markets had “a knee-jerk, bearish reaction.” He added that canola should regain some ground once “calmer heads prevail.”
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Declines on Chicago soybeans and soymeal, along with European rapeseed added more pressure onto canola. Gains in Chicago soyoil and Malaysian palm oil tried to stem the losses in the Canadian oilseed. Upticks in crude oil lent support to the vegetable oils.
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The Canadian dollar was down hard at mid-session Tuesday, also in reaction to Trump’s announcement. The loonie dropped to 71.02 U.S. cents compared to Monday’s close of 71.53.
Approximately 81,200 canola contracts were traded as of 10:27 am CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Jan 575.00 dn 18.00 Mar 588.10 dn 17.80 May 598.00 dn 16.60 Jul 602.40 dn 15.00
