The canola market drifted lower again yesterday on thoughts that canola supply will be more than adequate this year.
After a late start, the harvest progress has nearly caught up and is now close to being at the long term average.
The November contract was at $379.70 per tonne in late trade, down from $382.80 on Monday and the January contract was at $386.20, down from $388.10.
There was heavy trade volume as index funds were rolling their November contracts to the January contract.
At noon yesterday, $1 US was worth $1.0871 Canadian compared to $1.0861 on Monday at the same time.
Chicago soybeans were also lower on expectation of a big crop. The United States Department of Agriculture said that as of Sunday, five percent of U.S. soybeans had been harvested, compared to the five-year average of 18 percent.
Oil World, the influential vegetable oil analyst, said while there will likely be a big U.S. soybean crop, there market will be supported by very strong demand because it is the only supply available at least until South America begins its harvest about February-March in 2010.
Oil World also said that although the European Union has produced a bigger than expected rapeseed crop, prices will be supported by strong internal demand.
