Canadian canola futures are poised to slip back in the short term, although the oilseed could climb slowly higher in the long term, said Jamie Wilton, trader with R.J. O’Brien in Winnipeg, Man.
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.