Canola futures extended losses from Monday, as Chinese tariffs and fresh trade threats from US President Donald Trump overhung the market.
The nearby May futures plunged the $40/tonne limit on Monday after China announced
a 100% tariff rate on Canadian canola oil and canola meal over the weekend in retaliation for earlier Canadian tariffs on Chinese EVs, steel and aluminum. Peas, pork, aquatic products were hit as well.
Meanwhile, Trump lashed out at Canada today, pledging even greater financial pain in response to Ontario placing a surcharge on US-bound electricity. Later in the day, Ontario Premier Doug Ford said he was withdrawing the surcharge after US officials agreed to a meeting to discuss a renewed trade deal between the two countries.
Since Friday, the May canola contract has plunged more than $54/tonne or about 8.4%.
May canola was $14.10 lower today at $590.90, with November down $8.60 at $612.
