Hefty declines in crude oil sent canola futures to double-digit losses on Wednesday.
U.S. crude oil lost as much as 15% to $88/barrel today amid renewed hopes that a deal between the U.S. and Iran could lead to the gradual reopening of the Strait of Hormuz and the lifting of the U.S. blockade on Iranian ports. Losses in the Chicago soy complex, as well as European rapeseed and palm oil added to the pressure on canola.
A Statistics Canada grain stocks report earlier today showed total national canola stocks as of March 31 at 9.985 million tonnes, up 27.4% from a year earlier and the heaviest stocks for the date since 2020. At 8.516 million tonnes, March 31 on-farm canola stocks were up 30.1% from a year earlier, while commercial stocks increased a much more modest 13.8% to 1.469 million.
July canola dropped $13.80 to $743.50, and November lost $16.50 to $745.60.
