Canola futures took back most of the previous day’s losses as the market continued to refuse to cave in following China’s announcement of a new anti-dumping duty on imports of Canadian canola.
China announced Tuesday it had slapped a provisional anti-dumping duty of nearly 76% on imports of Canadian canola. The announcement sent canola to immediate sharp losses but the market rebounded on Wednesday before falling again Thursday as the levy came into force. With the gains today, canola is now down about $20/tonne from where the market closed on Monday, before the China news.
Industry officials say the current duty, if left unchanged, will choke off all remaining canola trade between the two countries. However, tight old-crop supplies, and expectations of a continued tight canola balance sheet in 2025-26, are reportedly helping to underpin the market.
Gains in Chicago soybeans and soybean oil, along with palm oil, further support canola today. European rapeseed was lower.
November canola gained $6.40 to $660.90, and January was up $5.70 at $672.70.
