‘Mercy of politics’: Canadian farmers weigh plans as Chinese tariff hits canola price

As Chinese tariffs on Canadian canola products continue to hamper the cash price of one of the country’s most valuable crops, farming experts say producers have big decisions ahead of them.

Market analyst Chuck Penner with LeftField Commodity Research said while future prices are down slightly, the cash price farmers receive for their canola, also known as the basis, is much lower.

He said the drop has resulted in farmers losing at least $140 million on their canola in the last two weeks. But compared with March, when China imposed a 100 per cent tariff on canola oil and meal, losses amount to $800 million, he said.

“There’s other factors going on in the market as well, but that’s just a quick and dirty look at it,” Penner said.