Canola flies away from its relationship with soybeans in Canada

Canola prices have soared this season and have mostly divorced from their usual connections with the soybean complex. It’s no surprise November canola futures last week closed at a contract high of about $927 per tonne given an estimated national average yield of only 25.3 bushels and acres, the lowest since 2002 due to drought and heat. The November contract soared in July along with the mercury and lack of rain and has since fluctuated between about $845 to $925. But November soybeans peaked June 7 and have since fallen as weather improved in the Midwest, increasing prospects for the crop in the United States. The price was further weakened when the U.S. Department of Agriculture’s Sept. 1 quarterly grain stocks report pegged soybean stocks at 256 million bu., significantly higher than the average of the trade’s expectation of 174 million. The November soybean price is now the lowest since last December and the December soy meal contract is the lowest in a year. Two connected ...