Canola Prices Plunge Then Recover Amid Crude Oil Fluctuations

Canola futures prices have been experiencing wild swings in recent weeks, but the commodity has managed to bounce back after a sharp drop. According to David Derwin, a Commodities & Investment Advisor and Portfolio Manager with Ventum Financial in Winnipeg, canola reached a high of $840 a tonne in late July before plummeting to around $750 a tonne. The November canola contract then climbed up to around $780 in recent trading.

The price of crude oil was around $91 a barrel in late July, but it fell to as low as $74 last week and has since risen to $83 as of Tuesday. Derwin says this fluctuation had an impact on the canola market.

Weather conditions also played a role, with hail and heatwaves in July followed by heavy rain in June. Additionally, seasonal trends tend to pull grain prices down into the September-October timeframe during harvest season.