Winnipeg canola and Paris rapeseed futures were hit hard overnight. Led lower by Chicago soybeans to some degree but the C$40.00 / tonne hit at Winnipeg was outdone by even sharper falls in the upcountry cash bids where XF SE Sask values fell by more the C$70.00 / tonne.
The combination of a 100% tariff on Canadian canola oil and meal announced by China over the weekend, and now a potential 25% US tariff has smashed Canadian canola values out the window. With the EU likely to recover from last years lower production this season. It leaves fewer big importers for Canada to trade with. Like sorghum, this may leave Australia in the box seat for supply into the Chinese market if the demand is there.
There was talk of Canadian producers being unable to sell stored unsold canola yesterday, traders walked away from the offer to sell. There was also talk of a trader not renewing a canola storage lease at a facility in Winkler Manitoba. It was not stated if this was related to the tariff debacle or not.

Onto something a little more positive. Wheat was the clear winner in the US futures market last night. Double digit gains in all three of the major grades a welcome sight. The trade shrugged off the less than expected weekly export data for US wheat and instead focused on technical trade, using the fundamentals of dry weather in Russian and the yet to be determined condition of the US winter wheat crop as the main drivers.

Algeria is looking to buy wheat. Jordan picked up 100kt of feed barley at US$230.50 C&F last week. On the back of an envelope this would roughly compare to something close to AUD$260 XF LPP. Offers to the Jordan tender ranged from US$230.50 / tonne to US$242.00 / tonne. The Asian market remains the best home for Aussie barley. This morning C&F China values of US$244 for Aussie barley tend to support a local price closer to AUD$300 XF LPP less trade margin.