The prospect of US tariffs continued to overhang canola futures on Wednesday.
US President-elect Donald Trump’s has vowed to implement a 25% tariff on imported goods from Canada and Mexico, as well as an additional 10% tariff on China. That would be negative for demand – and prices – as most of Canada’s canola oil exports are shipped into the US.
Losses in Chicago soybean oil also undermined canola today, as did weakness in European rapeseed.
A Statistics Canada crush report today showed 1.1 million tonnes of canola was crushed by domestic processors in October, topping the previous high of 1.005 million achieved just four months earlier in July.
The American government and markets will be closed on Thursday for the US Thanksgiving holiday, with the latter having a hard open on Friday morning for a shortened session closing at 12:05 pm CST.
January canola fell $15.70 to $564.60, and March was down $15.10 at $579.10.
