Canola futures continued their upward march on Wednesday, as the market’s focus returns to tight old-crop fundamentals.
Chinese duties on imports of Canadian canola oil and meal remain in place, but shipments of seed are continuing unabated. Despite US tariff threats, Canadian canola products also continue to move into the US. Combined with a strong domestic crush pace, old-crop canola ending stocks are projected by Agriculture Canada at a 12-year low.
Meanwhile, with Statistics Canada last month estimating new-crop canola planted area at 21.65 million acres, down 1.7% from a year earlier, the market may have even less of a cushion in the event of a Prairie weather problem.
The Chicago soy complex was higher today, offering additional support to canola, with European rapeseed futures also up.
May canola gained $4.90 to $673.80, and November added $3.70 to $652.70.
