Jamie Wilton, trader for RJ O’Brien in Winnipeg, said he and the canola trade is watching and waiting while Prime Minister Mark Carney visits China this week.
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.
Only minor changes to the grain and oilseed balance sheets are expected in the Sept. 12 supply and demand report from the United States Department of Agriculture, said an analyst.
Without the Chinese market, it’s only a matter of time before canola futures are poised to break below C$600 per tonne in its November contract, said Phil Speiss, trader with RBC Dominion Securities in Winnipeg.