Highlights
On Tuesday, China hit Canada with an anti-dumping probe on canola after Canada imposed 100% tariffs on China’s electric vehicles and a 25% tariff on China’s aluminum. Canola November futures traded down the $45 per mt limit on Tuesday and settled down $23.80. Yesterday, canola stayed above Tuesday’s low, but settled down another $11.20.
Many analysts are saying this could be a trick that China likes to do to drop the prices of a commodity before making a purchase. More than 50% of canola produced in Canada is sold to China, while sourcing up to 90% China canola imports in the previous years.
