Canola Posts Longest Slump in 29 Months on Supply OutlookJen Skerritt
Canola futures posted the longest slump in 29 months on speculation that farmers will harvest the biggest crop ever in Canada, the world’s largest grower.
Output may climb to 14.7 million metric tons, topping the record of 14.6 million in 2011, Statistics Canada said last month. Alberta, the second-largest provincial grower, said 87 percent of the crop was good to excellent as of Aug. 27, and government reports show yields are normal 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 over the next couple of weeks.”
Canola futures for November settlement fell 1.6 percent to close at C$508.80 ($483.67) a ton at 1:28 p.m. on ICE Futures Exchange in Winnipeg. The price dropped for the seventh straight session, the longest slump since March 15, 2011. The oilseed has dropped 14 percent this year.
Saskatchewan is the top provincial grower.