The Canadian government raised sharply its estimates for canola-seed production on Friday, sending prices in the futures market toward three-year lows. The canola seed is used to make cooking oil that in recent years has made big inroads among health-conscious consumers. It competes with Soybean Oil and Palm Oil.
Prices have tumbled 21% this year as investors and traders have anticipated the big influx of supplies from Canada, the world’s largest exporter and No. 2 grower of canola, after the European Union.
On Friday, prices for the November canola futures contract fell 1.3% to 477.60 Canadian dollars (US$462.27) a metric ton on the ICE Futures Canada exchange.
via Canola Falls as Canada Increases Its Forecast – WSJ.com