The EU have implemented their carbon tax on imports as of January 1st. I’m not sure if this will in time replace the ISCC scheme we are currently participating in with canola or if it is an additional EU tax, my guess is the later.
The MACF tax, or as it is called in English, the EU Carbon Border Adjustment Mechanism, CBAM, is designed to put a “fair” price on the carbon emitted during the production of certain carbon-intensive goods that are imported into the EU. Nothing like self imposed tariffs, they have never inflated prices for those implementing them have they. But let’s stick to the socialist agenda here.
The primary goal is to prevent “carbon leakage”. This may occur where companies, exist in, or relocate production from the EU to, less emission stringent countries, then import those products into the EU.
EU importers are to purchase digital CBAM / MACF certificates that correspond to what the cost of carbon credits would be as if those products were produced in the EU under their current Emissions Trading Scheme. If an importer can prove a carbon price has already been paid in the producing country, that amount can be deducted from the EU determined amount. Talk about a convoluted import tariff.
Currently the sectors being impacted include iron and steel, cement, aluminium, fertilizer, hydrogen and electricity, mmmm no oil mentioned, so probably no impact on canola. This may have a major impact on the cost of fertilizer used in EU states.

US wheat futures closed in the green last night. Nice gains there should be reflected here as we also see the AUD shedding a few points. The wires state that good demand signals for US wheat was the main driver for a better close in Chicago wheat futures last night. The USDA will announce wheat sales data tonight and the January WASDE is out on the 12th. So we should see positioning associated with that report over the next couple of sessions.