Canola Eases From August Highs

Canola futures fell to around CAD 645 per tonne retreating from late August highs as a short lived rally collided with supply and demand constraints that sparked profit taking and repositioning.

The initial post harvest bounce was supported by strong domestic crush margins and rising biofuel demand but it lacked broad export follow through because China remains effectively closed by steep tariffs and commercial buyers are content to source alternative origins.

Farmer deliveries across the Prairies, although lighter than a year ago, still leave a large grain pool to be worked through and visible commercial offers and tender results invited selling after the rapid advance.

Technical selling after the breakout and the looming Statistics Canada production update on December 4, which could confirm a larger than expected crop, further capped upside.

The market’s support remains intact but not deep enough to absorb heavier selling.