China’s most active Zhengzhou rapeseed (canola) meal futures posted their largest daily gain in nearly three months on Monday, after Canadian Prime Minister Mark Carney and Chinese President Xi Jinping met in South Korea last week without securing a breakthrough on tariffs.
Look for November canola to slip below C$600 per tonne by the end of Thanksgiving week, said Phil Speiss, trader with RBC Dominion Securities in Winnipeg.
Canola futures on the Intercontinental Exchange are being pressured by the harvest and a lack of export demand. One analyst said they could fall to their March lows.
As canola futures find some ground on the Intercontinental Exchange during the week ended Sept. 24, the Canadian oilseed’s path will soon be a steady decline. That’s the assessment from Tony Tryhuk, trader with RBC Dominion Securities in Winnipeg.
Expect canola futures to fall back in the coming months, said analyst Jerry Klassen of Resilient Capital in Winnipeg. Klassen pointed to the Statistics Canada production update and China as two reasons for the coming declines.
Feed millers in Vietnam are taking advantage of bargain prices with rare purchases of Canadian canola meal after China imposed hefty tariffs on the oilseed.