Canola futures have been in a downward slide following exuberance from the summer’s rally on positive biofuel news. 

November futures dipped below the key C$600 support level on Wednesday before rallying off their lows and posting a strong reversal day on Thursday. Weakness in comparable vegetable oil markets added pressure over the past month. 

Additionally, harvest pressure may limited upside in canola for the near term, though farmers have been making considerable progress over the past few weeks. 

As of Oct. 1, 76 percent of the canola crop in Manitoba was harvested. Saskatchewan’s harvest reached 72 percent complete by the beginning of the month. Nearly 80 percent of Alberta’s harvest was complete. 

Canola oil consumption for U.S. biomass-based diesel totaled 219 million pounds in July, down from the previous month. Total usage for the calendar year is down 50 percent from a year ago, following the expiration of the Producer’s Tax Credit and lower U.S. imports from Canada. 

Canada has attempted to renew relations with China to resume canola exports to the country with lower tariffs following China’s anti-dumping probe. Exports from Australia have been helping to fill gaps resulting from reduced North American flows. 

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