Canola futures closed lower on Friday, initially rallying but then falling back following the news that China was extending its anti-dumping investigation against Canadian supplies for another six months.
Beijing initially announced a preliminary duty of 75.8% last month but cited the complexity of the case in granting the six-month extension to come to a final decision. The final ruling on the matter could either confirm, reduce, or overturn the duties
In a joint news release, Canadian canola groups said they were cautiously optimistic, noting the extra time provides the Canadian and Chinese governments more opportunity to work towards a resolution.
Canola initially rallied on the China news but was pulled back to losses amid steep losses in Chicago soybean oil and declines in crude oil. European rapeseed was higher while palm oil did not trade.
Also today, the federal government announced a suite of new measures to strengthen Canada’s canola sector and broader agriculture industry against mounting trade and policy challenges.
Today’s Alberta crop report showed the harvest of major crops in the province at 22% complete as of Tuesday, up from just 8% a week earlier and now ahead of the five- and 10-year average. An estimated 3% of the Alberta canola crop was in the bin.
November canola dropped $3.40 to $616.80, and January fell $3.90 to $628.20.
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