Canola futures ended with modest gains on Tuesday as US President Donald Trump further walked back tariffs levied earlier this week.
Canola drew support as Trump agreed today to pause until April 2 tariffs on imports from Canada and Mexico that are covered by the USMCA, the free trade agreement signed between Canada, the U.S., and Mexico in 2020. Canadian exports of canola seed, oil, and meal are covered under the agreement. The US is the biggest buyer of Canadian canola oil and canola meal.
Strength in the Chicago soy complex, European rapeseed, and palm also helped to underpin canola, as did the tightening domestic supply-demand balance.
May canola was $2.10 higher at $634.60, and November gained $2.90 to $633.30.
