Oct. 16 (Bloomberg) -- Canola futures rose to the highest in almost four weeks on signs that demand from overseas buyers is increasing for crops from Canada, the world’s top grower.
Exports will probably rise 7.4 percent this season from a year earlier, Agriculture and Agri-Food Canada has forecast. Canola processing gained 3.3 percent to 151,795 metric tons in the week that ended Oct. 9 from a week earlier, according to the Canadian Oilseed Processors Association.
“Offshore demand is pretty good,” Lorne Boundy, a trader with Paterson Grain, said in a telephone interview from Winnipeg. “They’re looking at the seed in general for crush, for oil.”
Canola futures for November settlement increased 1.3 percent to close at C$493.50 ($477.60) a ton at 1:24 p.m. on ICE Futures Exchange in Winnipeg, after touching $494.50, the highest for a most-active contract since Sept. 19. The oilseed has declined 16 percent this year on signs of increasing production.
Output this season may climb to a record 16 million metric tons, exceeding the record of 14.6 million tons in 2011, Statistics Canada said Oct. 4.
--Editors: Thomas Galatola, Millie Munshi