Canola futures posted heavy losses on Tuesday but still managed to rebound from limit declines earlier in the day.
Canola initially traded down the $45/tonne limit on the news that China is planning to launch an anti-dumping probe into imports of Canadian canola but managed to end the day with more modest declines.
China claimed the probe is in response to a sharp increase in canola imports from Canada in 2023, but the timing suggests it’s retaliation for Canada’s 100% import tariff on Chinese electric vehicles announced last week.
In a statement today, the Canola Council of Canada (CCC) said it is awaiting further details on the Chinese investigation but added it remains confident the outcome “will demonstrate alignment with and reinforce our support for rules-based trade.”
November canola closed $23.80 lower at $590.90, and January was down $20.80 at $603.
