ICE Close: Soybean Selling Spills over to Canola

Canola futures ended lower on Friday as selling in Chicago soybeans spilled over to weigh on prices.

Soybeans were pressured as China today announced a 5% increase to the tariffs on U.S. soybeans, taking them to 30% starting on Sept. 1. As well, China said extra 10% duties on U.S. wheat, corn and sorghum will take effect from Dec. 15. The new tariff announcements - although largely deemed symbolic as Chinese purchases of U.S. ag commodities have mostly already dried up - further ratcheted up trade tensions between the two countries.

On the other hand, some support for canola came as the threat of frost increases as September approaches. Next week, Prairie nighttime temperatures will be in the single digits, particularly in the more northern growing regions.

Some rain is expected in the eastern Prairie regions over the weekend, with less rain in the forecast for the western regions.

November canola was down $3.20 at $449.90, January lost $3.40 to $457.70 and March was down $3.20 at $464.90.

Source: DePutter Publishing Ltd.

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