Canola Extends Longest Slump in 2 Years on Record Harvest
Canola futures declined, extending the longest slump in more than two years, on signs that farmers are harvesting the biggest crop ever in Canada, the world’s largest grower.
Production may climb to 14.7 million metric tons, exceeding the record of 14.6 million tons in 2011, Statistics Canada said on Aug. 21. Alberta, the second-largest grower, said 87 percent of the province’s crop was in good to excellent condition as of Aug. 27, and government reports show yields are average to above average in southwestern Manitoba.
“I’m hearing of record yields,” Jerry Klassen, the manager of Canadian operations and trading at GAP SA Grains & Produits, said in a telephone interview from Winnipeg. “The trade is anticipating a fair amount of farmer selling here over the next couple of weeks.”
Canola futures for November settlement fell 0.4 percent to C$514.80 ($489.96) a ton at 10:31 a.m. on ICE Futures Exchange in Winnipeg, extending the longest slide for the most-active contract since March 15, 2011. Prices are down 12 percent this year through yesterday.
To contact the reporter on this story: Jen Skerritt in Winnipeg at firstname.lastname@example.org
To contact the editor responsible for this story: Steve Stroth at email@example.com