Nearby canola futures skidded to limit losses on Monday, following China’s announcement over the weekend to slap tariffs on oil and meal.
China’s State Council Tariff Commission said it will impose a 100% tariff rate on Canadian canola oil, canola meal and peas, with a 25% duty on Canadian pork and aquatic products. Set to take effect on March 20, the tariffs are retaliation for the Canadian government’s move last fall to slap levies on Chinese-made electric vehicles, steel and aluminum products.
According to the Canola Council of Canada, total exports to China were valued at almost $5 billion in 2024, including 2 million tonnes of canola meal, valued at $918 million and 15,351 metric tonnes of canola oil, valued at $20.6 million.
Losses in the Chicago soy complex, as Chinese tariffs on US soybeans took effect today, added to the downside in canola, as did weakness in European rapeseed, palm oil, and crude oil.
May canola plummeted $40 to $605, and November lost $18.40 to $620.60.
