Sept. 3 (Bloomberg) -- Canola futures fell for a fifth straight session, the longest slump this year, on mounting signs that farmers will harvest a record crop before the season’s first frost in Canada, the world’s largest grower.
Production will jump 11 percent to 14.7 million metric tons, topping the previous record of 14.6 million in 2011, Statistics Canada said in a Aug. 21 survey of about 15,000 farmers. Early harvesting in Saskatchewan, the biggest canola grower, showed yields of 30 to 36 bushels an acre, the province said. Alberta reported 17 percent of the crop collected, while Manitoba said was 20 percent was harvested in the southwest.
“The anecdotal reports from various people are saying the yields are quite phenomenal, and at the same time, some of it is already getting into the bin, so some of the risk is coming off,” Chuck Penner, the owner of LeftField Commodity Research, said in a telephone interview from Winnipeg. “It’s just that much closer to being safely in the bin.”
Canola futures for November settlement fell less than 0.1 percent to close at C$522.20 ($495.78) a ton at 1:47 p.m. on ICE Futures Exchange in Winnipeg, capping the longest slump for a most-active contract since Dec. 12. Prices are down 11 percent this year.
--Editors: Steve Stroth, Thomas Galatola