Canola futures ended lower on Friday, posting a fifth straight day of losses.
The canola market has been under pressure all week after China announced new tariffs on imports of Canadian canola oil and meal over the weekend. With the declines today, the nearby May future has now lost more than 13% of its value since Friday’s close. China’s 100% tariffs are set to take effect on March 20.
In 2024, total exports to China were valued at almost $5 billion and included 2 million tonnes of canola meal, valued at $918 million and 15,351 tonnes of canola oil, valued at $20.6 million.
The Canola Council of Canada has said the tariffs will have “a devastating impact on canola farmers and the broader value chain.”
Gains in the Canadian dollar added to the pressure on canola today, although Chicago soybeans and soymeal, along with crude oil, were stronger.
May canola lost $6.40 to $560.50, and November dropped $5 to $584.80.
