Canola futures fell sharply on Monday as the Chicago soy complex was battered by a turn to wetter weather in Argentina and the rising potential for US tariffs.
Declines in European rapeseed and heavy losses in palm oil added to the downside in canola. Meanwhile, US President Donald Trump told reporters this afternoon he will go ahead with 25% tariffs on most US imports of Canadian goods next week. If he follows through, the tariffs will be negative for American demand for Canadian canola and canola products. The US is the largest buyer of Canadian canola oil.
After localized heavy rain over the weekend, more showers are in the forecast for Argentina this week, which are expected to end most of the concerns about dryness for soy crops in the central and southern portions of the country.
March canola tumbled $19.90 to $647.90, and November was down $17.10 to $649.90.
