Canola futures rallied on Monday, with Canada seemingly dodging new US President Donald Trump’s tariffs – at least for now.
Reports said that Trump – who was inaugurated today in Washington – will not impose tariffs on Canada (or Mexico or China) on his first day in the Oval Office. Instead, he has apparently directed various agencies to investigate and offer remedies for trade imbalances and unfair trade practices.
Canada had promised a dollar-for-dollar response if the tariffs were levied, putting the two countries at risk of a trade war. Canola would have been caught in the crossfire, given that the US is the largest buyer of Canadian canola oil. Trump’s biofuel policy also remains an open question in terms of America’s canola oil demand.
US markets were closed today for the Martin Luther King holiday.
March canola was up $15.90 at $631.90, and November added $4 to $629.60.
