Canola prices are not expected to move out of their current trading range—even though supplies remain tight in Canada.
Jade Delafraye is the Global Agriculture Editorial Manager with Argus Media based in London.
She says vegetable oil demand in the European Union is weak and Australia has produced a record canola crop.
Delafraye says Canada has already moved the majority of its canola exports for the current crop year.
Domestic canola crushers have been operating at near capacity.
The United States is the destination for most Canadian canola oil.
Delafraye says vegetable oil demand in Europe is weak and that is not expected to change in the foreseeable future.
Another thing to monitor is whether China will resume buying Australian canola. Political disagreements have sharply reduced trade between the two nations over the past couple of years. However, China is now buying some coal from Australia. Delafraye says the Chinese could consider expanding trade to agricultural commodities as well
Jade Delafraye is the Global Agriculture Editorial Manager with Argus Media in London. Her comments come from a webinar held last Thursday.
