Mixed outlook for canola and pulses

Canadian farmers grew a record canola crop this year at 21.8 million metric tonnes, according to Statistics Canada's final Production of Principal Field Crops, released December 4.

But it comes at the same time Canada's largest buyer, China, has implemented hefty import tariffs - 100 per cent on canola oil and canola meal and a 76.8 per cent levy on canola seed.

Canada is not the only country to grow a large canola crop either this year as Australia and Russia did the same, said Chuck Penner, Grain Market Analyst with Left Field Commodity Research.

Penner says the Chinese tariffs and uncertainty about U.S. government biofuel policy are impacting his canola export projections. He expects smaller exports this year, but increased crush demand.