US President-elect Donald Trump’s tariff threat undermined canola futures on Tuesday.
Canola fell after Trump vowed to impose a 25% tariff on imports from Canada and Mexico, with goods from China potentially seeing a further 10% tariff. The US is the top market for Canadian canola oil and meal, with American imports of canola oil hitting a new record high of 2.9 million tonnes, valued at $6.3 billion, in 2023.
The losses in canola were limited by a weaker Canadian dollar, and strong advances in Chicago soybean oil, which was buoyed by ideas of increased demand if canola oil is subject to import tariffs. Palm oil was also higher on the day, but European rapeseed was lower as well.
January canola dropped $12.70 to $580.30, and March lost $11.70 to $594.20.
