July 25 (Bloomberg) -- Canola extended its slump to a 33-month low, tracking declines in soybeans and palm oil, on signs of slowing global demand for oilseeds and improving prospects for the crop in Canada.
Exports of canola from Canada, the world’s top grower and shipper, were down 14 percent in the 10 months through May, compared with a year earlier, government data show. Mexico, the third-largest canola buyer, reduced purchases by 2.2 percent in the marketing year that ends July 31. Canadian farmers will boost production of the oilseed by 9.7 percent this year to 14.6 million metric tons, the highest since the record harvest of 14.61 million in 2011.
“Export demand has really dried up the last month or so for canola,” Chuck Penner, the owner of LeftField Commodity Research, said in a telephone interview from Winnipeg.
Canola futures for November settlement fell 2.3 percent to close at C$493.70 ($481.05) at 1:47 p.m. on ICE Futures Exchange in Winnipeg, after touching $493.10, the lowest for a most-active contract since Oct. 8, 2010. Prices have tumbled 7.7 percent in July.
Palm-oil futures in Malaysia are down 26 percent in the past 12 months, touching the lowest price today since October 2009. Soybean-oil futures tumbled to a 33-month low today in Chicago, down 17 percent from a year ago.
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