Canola futures continued to hit new highs on Friday, as supplies tighten.
The soon-to-expire March contract peaked at a record C$780.90/tonne before easing back into the close.
A trader said Canada is essentially running out of canola, which has led to price rationing and sharp hikes in cash prices.
The Canadian Grain Commission shed some light on the situation in its weekly grain movement report. For the week ended Feb. 14, producer deliveries of canola dropped 46% from the previous week to 263,000 tonnes. Exports plummeted 70% to less than 51,000 tonnes and domestic usage was down 11.5% at 178,000 tonnes. The frigid temperatures across the Prairies also played a role in the declines.
Although canola has been acting independently, it did garner spillover from sharp gains in Chicago soyoil.
May canola was up $8.60 at $735.50, July gained $10.40 to $705.50 and new-crop November was $9.10 higher at $592.50.
Source: DePutter Publishing Ltd.
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