Canola futures remained pointed lower on Friday, following a record Canadian production estimate from Statistics Canada a day earlier.
Canola production was forecast at a record 21.804 million tonnes, up 13.3% on the year and topping the previous high of 21.458 million tonnes set in 2017. While the large crop ensures ample domestic and exportable supply for 2025-26, the bigger-than-expected output could weigh on prices until export demand absorbs more of the supply, especially amid Chinese tariffs.
As can be seen on the futures chart below, the March canola contract is trading at its lowest since early October.
Losses in Chicago soy complex added to the pressure on canola today, while palm oil and European rapeseed were higher.
January canola fell $7.10 to $617.90, and March was down $8.10 at $631.10.
March canola: source - Barchart
