According to analyst Errol Anderson of ProMarket Communications in Calgary, there is presently little upside to new-crop November canola on ICE Futures.
Anderson points to losses in Malaysian palm oil and weakness in China’s soymeal market as weighing on ICE canola values, with more pressure coming out of South America.
The U.S. Department of Agriculture on Tuesday bumped up its call on the Brazil soybean harvest by one million tonnes at a record 154 million tonnes, in the department’s latest supply and demand report.
Meanwhile, drought-ravaged Argentina saw its production chopped by six million tonnes at only 25 million.
At one time, there had been hopes of Argentina reaping 40 million tonnes or more of soybeans.