WINNIPEG, Manitoba--Following the trade agreement reached between Canada and China, canola futures on the Intercontinental Exchange were higher on Friday morning. However, the gains were fading.
Reports said the deal includes China cutting its tariffs on Canadian canola seed to 15 per cent come March 1, while removing all levies on canola meal, peas and seafood from March to the end of 2026. In exchange, Canada will allow 49,000 Chinese electric vehicles into the country at a surcharge of only 6.1 per percent compared with the current 100 per cent. The deal made no mention of tariffs reductions on Canadian canola oil.
The March canola contract has now surpassed its 100-day moving average.
Additional support for canola came from gains in MATIF rapeseed, Malaysian palm oil and Chicago meal, but losses in the soybeans and soyoil tempered the upside. Increases in crude oil were spilling over into the vegetable oils.
The Canadian Grain Commission reported canola exports for the week ended Jan. 11 were 112,600 tons compared with 147,800 the previous week. The year-to-date reached 2.92 million tonnes, about two million tons less than a year ago.
The Canadian dollar were a pinch lower on Friday morning, with the loonie at 71.90 U.S. cents, compared with Thursday's close of 71.95.
Approximately 62,550 contracts had traded by 9:48 a.m. EST and prices in Canadian dollars per metric ton were:
Price Change
Mar 639.90 up 5.50
May 648.60 up 5.50
Jul 654.50 up 5.30
Nov 650.00 up 5.30
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
01-16-26 1020ET
