US spot canola oil prices fell on Wednesday January 22 as the benchmark soybean oil futures contract slumped almost 3% on the day.

Fastmarkets assessed canola oil, refined, bleached and deodorized, fob Los Angeles at $0.5292 per lb on Wednesday, down from $0.5427 per lb a day earlier. March soybean oil futures fell $0.0135 per lb at midweek to settle at $0.4442 per lb, down from $0.4577 per lb previously. 

Canola oil physical prices have declined by about 3% on the week amid expectations the US will soon place new tariffs on all goods imported from Canada. US President Donald Trump indicated on Tuesday January 21 that he plans to move ahead with a previously announced 25% tariff on all products from Mexico and Canada.

Canada exports around 70% of its canola oil to the US. The new tariff is expected to go into effect by February 1.

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