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Canada's smallest canola harvest in 13 years, caused by severe drought, is forcing importers to pay more or source from other countries. Exports from August 1 through the first seven weeks were down 71% year over year, and crushers are buying nearly all available supply.
Tight Canadian supply lifts canola meal and oil prices, and importers' switch to palm and soybean oil adds upward pressure on vegetable oil and feed protein markets.
theglobeandmail.comRod NickelOct 4, 2021Not enough comparable past events yet for a historical read.
After 184 past bullish weather events, Soybean Oil moved a median +0.3% over 5 sessions (53% higher; middle half -1.9% to +2.4%), and -0.5% over 20.
After 181 past bullish weather events, Palm Oil moved a median +0.5% over 5 sessions (56% higher; middle half -0.9% to +1.9%), and +0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Canada's smallest canola harvest in 13 years tightened global vegetable oil supply and lifted competing oils, supporting palm through substitution and sentiment.
