# Canada's drought forces canola importers to turn elsewhere - Grainews

> Canada's smallest canola harvest in 13 years, caused by severe drought, is forcing importers such as Japan and Mexico to pay more or buy elsewhere. Canadian canola exports are down 71% year over year, and ICE canola futures trade near $900 per tonne, up over 70% year over year.

- Date: 2021-10-04 · published 2021-10-04T12:00:00.000Z
- Category: weather · region Canada · magnitude high
- Page: https://feedsoft.ai/events/44559-canada-s-drought-forces-canola-importers-to-turn-elsewhere-grainews
- Commodities: [Canola Meal](https://feedsoft.ai/c/CANMEAL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Scarce Canadian canola supply keeps canola meal and oil prices high and pushes buyers toward palm and soybean oil, adding to global feed and food inflation.

## Read by commodity

- SBO: bullish ▲
- CANMEAL: bullish ▲
- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2021-10-05 | 5 | +9.6% | 2.8 | Canola futures up over 70% y/y on drought-hit supply raised the price of a competing oil and supported palm. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2021-10-04 | [Canada’s smallest canola harvest in 13 years forces importers to turn elsewhere - The Globe and Mail](https://feedsoft.ai/events/44557-canada-s-smallest-canola-harvest-in-13-years-forces-importers-to-turn-elsewhere.md) | +2.4% | +6.5% |
| SBO | 2021-10-04 | [Drought forces canola importers to pay more, scour other countries \| Financial Post](https://feedsoft.ai/events/44555-drought-forces-canola-importers-to-pay-more-scour-other-countries-financial-post.md) | +2.4% | +6.5% |
| SBO | 2023-03-24 | [Argentina exchange sees 2022/23 soy imports up 139% due to drought - DatamarNews](https://feedsoft.ai/events/36892-argentina-exchange-sees-2022-23-soy-imports-up-139-due-to-drought-datamarnews.md) | -0.6% | -2.6% |
| SBO | 2021-11-26 | [Canadian Drought Has Major Impact](https://feedsoft.ai/events/44015-canadian-drought-has-major-impact.md) | -4.6% | -4.5% |
| SBO | 2021-08-31 | [Rapeseed and canola prices supported by lower crop forecasts in Canada](https://feedsoft.ai/events/45664-rapeseed-and-canola-prices-supported-by-lower-crop-forecasts-in-canada.md) | -1.2% | +0.0% |
| PALMOIL | 2021-10-04 | [Canada’s smallest canola harvest in 13 years forces importers to turn elsewhere - The Globe and Mail](https://feedsoft.ai/events/44557-canada-s-smallest-canola-harvest-in-13-years-forces-importers-to-turn-elsewhere.md) | +8.9% | +10.3% |
| PALMOIL | 2021-10-04 | [Drought forces canola importers to pay more, scour other countries \| Financial Post](https://feedsoft.ai/events/44555-drought-forces-canola-importers-to-pay-more-scour-other-countries-financial-post.md) | +8.9% | +10.3% |
| PALMOIL | 2023-12-26 | [Global 2024 staple food supplies to be strained by dry weather, export curbs \| Reuters](https://feedsoft.ai/events/32481-global-2024-staple-food-supplies-to-be-strained-by-dry-weather-export-curbs.md) | -0.9% | +2.0% |

## Sources

- grainews.ca: https://www.grainews.ca/daily/canadas-drought-forces-canola-importers-to-turn-elsewhere/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.