Canola futures suffered heavy losses to begin the week amid beneficial Prairie rainfall and sharp declines in Chicago soybean oil prices.
According to World Weather, rainfall from Friday through the weekend was variable, although nearly all areas that had been dry received at least some moisture. The most significant improvement in soil and crop conditions likely occurred in central and southern Alberta and west-central through central Saskatchewan, which was one of the driest areas previously, the forecaster said.
Meanwhile, the losses in soyoil were sparked by hefty declines in crude oil. The crude oil market initially rallied in overnight trading following the US military strikes on Iran over the weekend. However, the crude market turned lower on growing sentiment that Middle East oil supplies are unlikely to be significantly disrupted. Soybeans and soybean meal also ended the day lower.
In updated monthly supply-demand estimates released after the market close on Friday, Agriculture Canada projected 2024-25 canola ending stocks at just 1.15 million tonnes, down from 1.3 million last month, 58% below a year earlier and potentially the lowest in 12 years.
November canola fell $17.70 to $725, and January was down $18.10 at $732.20.
