Canola futures closed higher on Monday, as the market tracked an up and down day for Chicago soybeans.
Canola was initially lower overnight on fears that import tariffs announced by US President Donald Trump on Canada, Mexico, and China could severely curtail Canadian exports of canola oil and meal into the US. However, canola rebounded with soybeans on news that Trump had pushed back the implementation of tariffs on Mexican goods until March.
With Trump and Canadian Prime Minister Justin Trudeau to speak this afternoon, there is also hope the tariffs on Canada could also be delayed.
Weakness in the Canadian dollar provided some support for canola as well. The loonie initially plunged to around 20-year lows on the tariff fears today, before managing to claw back most of those losses. Strength in European rapeseed and palm oil provided further support for canola, although crude oil was lower.
March canola was up $2.40 at $640.50, and November gained $3.90 to $642.50.
