Canola: Key Factors Driving Market Prices

For now, technical indicators and outside money flows are driving canola futures. In the medium term, it will be all about China. Renewable fuel standards are a wild card for canola in the long run.

As previously reported here, demand for canola oil as a renewable fuel is threatened by the potential for full lifecycle accounting requirements on the impact of fertilizer manufacturing and applications on the crop. In addition now, the Mexican government’s move to ban GMO corn has prompted concerns that Canadian canola could fall under the same policy…