Canola Rises to August Highs

Canola futures climbed above CAD 650 per tonne near late August highs as higher demand and tighter spot availability outweighed the brief pressure from the USDA updates.

The November USDA raised ending stocks for the US and globally which initially dampened prices, but that effect was quickly overtaken by real supply constraints and steady consumption.

Talks with China encouraged growers to hold back deliveries which reduced port availability in Western Canada, while profitable crush margins pulled processors back into the market and lifted bids for seed and oil.

At the same time Australian canola was priced above Vancouver offers which shifted interest toward Canadian origin in Japan Europe Mexico and parts of the Middle East, and recent tenders confirmed solid near term export demand.

Brazil and Argentina production estimates also failed to add meaningful immediate supply, so with fewer domestic offers and firm industrial and export use, canola continued to push higher.