Canola Futures Recover From Early Lows Amid Improved Harvest Progress

The Intercontinental Exchange (ICE) canola futures market saw prices decline on Wednesday morning, but began to recover from earlier lows. According to an analyst, the canola harvest progress in the Prairies is picking up, resulting in farmers delivering more oilseed.

Manitoba's canola harvest was reported as 43% complete, with yields ranging from below average to average. The analyst noted that the market now has a better understanding of this year's canola crop size, which has eliminated the risk premium in the oilseed.

The decline in Chicago soyoil prices and news of China buying canola from Australia for the first time since 2020 have put pressure on canola prices and crush margins. The Canadian dollar continued its downturn, trading at 70.94 U.S. cents as of Wednesday morning.