Canola futures rose for the third straight session, the longest rally since early August, on signs that increasing demand is soaking up supplies from a record Canadian harvest.
Exports from Canada, the world’s largest grower, will climb 10 percent and domestic processing of canola will rise to a record 7.2 million metric tons, Agriculture & Agri-Food Canada said on Oct. 16. Prices through yesterday were down 19 percent in the past 12 months on signs that output this year will jump 16 percent to 16 million tons, topping the previous record of 14.6 million tons in 2011.
“Demand is good and firm and strong and is probably going to continue to be so,” John Duvenaud, publisher of Wild Oats Grain Market Advisory, said in a telephone interview from Winnipeg. “We’ve got a big canola crush industry here now, and it’s operating pretty close to capacity.”
Canola futures for January settlement increased 0.6 percent to C$502.60 ($488.67) a ton at 11:10 a.m. on the ICE Futures Exchange in Winnipeg, after touching $502.80, the highest for a most-active contract since Sept. 13. The three-session rally is the longest since Aug. 2.
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