Canola futures extended gains on Tuesday, with the US tariff threat seemingly avoided and the tight old-crop supply situation coming back into focus.
Canola futures fell on Friday, dragged lower with the Chicago soy complex after China announced it would hit back with retaliatory levies after US President Donald Trump said he would slap a 34% tariff on American imports of Chinese goods. Trade tensions between the two nations increased further today, with Trump pledging an even higher tariff against imports from China.
However, Canada escaped relatively unscathed from Trump’s tariff announcement last week, putting some of the spotlight back on the dwindling old-crop canola supply. Amid strong export and domestic crush demand, Agriculture Canada has projected 2024-25 canola ending stocks at just 1.3 million tonnes, well down from 2.74 million a year earlier.
Soybean oil did close lower today but soymeal was higher, and soybeans ended mixed.
May canola was up $9.60 at $646.20, and November added $1.70 to $630.10.
