Report on the state of crops in Canada collapsed quotes for rapeseed and canola

Updated reports on the state of crops in the Canadian provinces of Saskatchewan, Manitoba and Alberta, released on Friday, showed a further deterioration in the state of crops, but the canola market reacted to them with a drop of 4.1%,followed by rapeseed prices fell by 3%.

Traders expected worse performance, so they actively sold off contracts. As a result, canola fell to 842 CAD/ton or 6 675/ton, which is 8% lower than the two-week level, but 1.4% higher than last month's price level.

According to reports, within two weeks, the drought in Canada increased, temperatures exceeded normal, and precipitation was not enough, so a small number of pods formed on canola crops, which will reduce yields. New rains will no longer be able to improve yields in the main agricultural regions of the country. In the south of the country, canola harvesting has already begun unusually early.

In the province of Saskatchewan, the largest producer of canola, soil moisture reserves were estimated at 38% as low, 58% as very low and only 4% as normal, although two weeks ago they were 8%. 35% of canola crops are in poor condition, 16% are in very poor condition, 35% are on average, and 14% are in good condition. From April 1 to July 26, 100-200 mm of precipitation fell in the province, which is significantly lower than normal.

In the province of Alberta, dry and hot weather worsens the condition of crops. The number of all crops in good or excellent condition in two weeks decreased by 17% to 20% (in particular, canola – to 16.8%), which is 51% lower than the average 5-year figure.

In the province of Manitoba, the heat wave also reduced the yield of major agricultural crops, and several municipalities declared agricultural areas in distress within a month. Precipitation in the region is uneven, so canola crops are at different stages of development, and their condition is much better than in other provinces. In northwestern Manitoba, 50% of canola crops are in good or excellent condition.

Amid the drought, the Statistical Office will update crop status reports on a weekly basis, which will add information to the market to predict the Canadian canola and spring wheat crop.

Following the fall in canola prices, August rapeseed futures on Euronext on Friday fell by €15.25/ton to €522.5/ton or € 619.8/ton.

In Ukraine, purchase prices for rapeseed for the week increased to 19200-19500 UAH/ton or 620-630 $/ton, but on Friday they fell to 18800-19200 UAH/ton under the pressure of falling stock prices, and will continue to fall in the future.