Canola futures were higher on Monday as the market continued to garner support from last week’s bullish Statistics Canada crop production report.
The report lowered estimated 2022 Canadian canola output to 18.17 million tonnes from the agency’s September estimate of 19.1 million. Although that is still up sharply from last year’s drought-reduced harvest, it fell below the low end of pre-report trade guesses.
Although there was a measure of support from Chicago soymeal today soybeans finished slightly lower after a day of choppy trading while there were sharp losses in soyoil. Modest increases in European rapeseed and Malaysian lent spillover to canola. A growing downturn in global crude oil prices put pressure on vegetable oils.
While canola crush margins remain quite strong, they have pulled back over the last week, taking away some support.
January canola gained $9.70 to $859, March was up $8.30 at $850, and May added $9.10 to $853.90.