The difference between the price of canola and soybeans is growing
against the background of concerns about reducing canola harvest in Canada and Australia award for oil continues to rise in comparison with the closest competitor soybeans.
on Friday, the November canola futures closed in Winnipeg on the level 506,7 CAD/t or 402,5 $/t and opened the 58 prize $/t over the relevant contract on soybean campaign in Chicago.
If the drought in Canada and Australia last premium for canola will continue to increase. Last year, the margin in November reached 70 $/t. Now in Australia, there were local precipitation, therefore, the fears of experts has declined.
the Australian canola Crop in 2017 will be less than last year. Rabobank predicts his level of 3.17 million tonnes, which will be 23% less than 2016, and 16% lower than average five-year level.
the USDA in early August estimated harvest of 3.2 million tonnes, while Australian oilseeds Federation – 3.12 million tons.
In Canada, the canola crops are also suffering from drought. Last week in good to excellent condition was 56.6% of crops against 85.2 percent a year earlier.
Traders expect the forecast by statistics Canada for the production, which will be released 31.08.17. Despite the increase in acreage to a record level of harvest will increase to 18.6 million tonnes against last year's 18,42 million tons.
Ministry of agriculture Canada estimates the canola crop at 19 million tons, while USDA is projecting him at around 20.5 million tons.
the Agency Oil World warns of tense situation on the world market of rapeseed, because it predicts the harvest of canola in Canada up to 18 million tons.