The canola market was weaker after some speculative demand and a sharp decline on Monday. At the same time, trading fell to new lows, although the demand for transactions helped moderate the decline.
The loss of Malaysian palm oil and Chicago Board of Trade soybean oil futures helped lower the canola rate, although soybeans were stronger that day and the Canadian dollar remained stable.
Current concerns about the outbreak of coronavirus COVID-19 remained a feature in the grain and oilseed markets. Blockades on railways and port facilities throughout Canada, in solidarity with protesters against pipelines in British Columbia, also retained some caution in the canola market.
Canola is a genetically modified rapeseed. Honey is made from rapeseed, about 50 kg is obtained from 1 ha.
About 38,468 contracts for canola traded on Tuesday, which is comparable to Monday, when 31,941 contracts changed hands. Distribution amounted to 32,952 contracts sold.
Soybean futures on the Chicago Board of Trade on Tuesday showed slight growth, observing a moderate recovery from significant losses associated with coronavirus on Monday.
Reports of drought causing soybean crops in Argentina also had an impact, and Brazilian crops continued to exert some pressure on the market. The decline in Malaysian palm oil also affected soybean oil and slowed soybean growth.
Political uncertainty in Malaysia contributed to palm oil weakness as the country's prime minister suddenly resigned. Concerns over the coronavirus COVID-19 remained a feature of the wheat market.
- The end of the upcoming 2019-2020 season may be marked by low volumes of rapeseed stocks worldwide.
- A special type of rapeseed, which is grown in Canada, canola, this year demonstrates low yields.
- Soybean productivity in the climatic conditions of Ukraine reaches 1.8-4 t / ha. Each hectare set aside for soybean cultivation yields a profit of € 1 thousand, according to the owner of Zhiva Niva company from the Zhytomyr region Alexei Yazykov.
