China Tariff Shakes Up Canola Meal Exports

ICE canola futures were volatile, initially reaching 19-month highs as new U.S. biofuel rules boosted soyoil prices and improved canola oil export prospects. The July-November canola futures spread tightened unexpectedly, with traders expressing skepticism over official crop statistics and tight old crop supplies. Dry weather in Western Canada raised concerns about the new crop's yield despite forecasts for some rain, though traders believe more is needed for crop recovery. Trading volumes surged after biofuel policy announcements but fell sharply during the U.S. Juneteenth holiday closure. Malaysian palm oil and European rapeseed prices were mixed, and the Canadian dollar weakened against the U.S. dollar. Additionally, Indian rapeseed meal exports to China increased after China imposed a 100% tariff on Canadian canola meal imports, impacting global market dynamics.