By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were attempting to recover by late Tuesday morning after they turned lower earlier.
The threat of United States tariffs continued to be the main driver pushing canola downward. Although the U.S. is well back of Canada’s largest export customers of canola seed, it’s the largest foreign buyer of the oil and meal.
An analyst said if the tariff threats are carried through by the U.S., canola will be negatively impacted. He added Canada would be able to find new customers for canola oil and meal, but the shift would take some time to occur.
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Increases in European rapeseed, Malaysian palm oil and the Chicago soy complex offered some respite to canola, it’s not enough to stem the declines. Crude oil dropped back, which added to the Canadian oilseed’s losses.
The Canadian dollar dropped further back at mid-session Tuesday, with the loonie at 69.97 U.S. cents compared to Monday close of 70.30.
Approximately 38,300 canola contracts were traded as of 10:24 am CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Mar 647.50 dn 0.40 May 659.00 dn 0.30 Jul 665.40 up 0.30 Nov 649.00 dn 0.90
