Dec. 3 (Bloomberg) -- Canola dropped to the lowest in almost two weeks on mounting speculation that farmers harvested the biggest crop ever in Canada, the world’s top grower.
Canadian production may climb to an all-time high of 16.784 million metric tons this year, according to an average estimate of 10 analysts surveyed by Bloomberg News. That’s higher than the government’s last estimate of 16 million tons from data collected in September. Statistics Canada is scheduled to release its crop forecasts on Dec. 4 at 8:30 a.m. in Ottawa.
The prospect of bigger production has “probably got people a bit nervous,” Ken Ball, a senior commodities futures adviser for PI Financial, said in a telephone interview from Winnipeg. The crop may be “uncomfortably large” as some firms in the Bloomberg survey estimated output at higher than 17 million tons, he said.
Canola futures for January settlement fell 1 percent to close at C$482.40 ($452.79) a ton at 1:23 p.m. on the ICE Futures Exchange in Winnipeg, after touching C$481.50, the lowest for a most-active contract since Nov. 21. The oilseed has declined 18 percent this year on signs of increasing production.
--Editors: Millie Munshi, Thomas Galatola