Canola futures have been working to buck their downtrend over the past couple of weeks but continued to deal with negative fundamentals. January canola traded $4.20 higher last week, a moderate gain after falling back from their weekly highs. 

Futures remained under pressure this week, as they struggled to trade past C$650 per ton, with that area being a likely resistance level. Overall, prices have tried to recover from their recent lows. Futures have traded higher for four consecutive weeks since posting multi-month lows on Oct. 1. 

Bloomberg reported that Australia is set to ship canola to China for the first time in five years. The outlet previously reported that at least three trial cargoes from Australia were booked by China for the fourth quarter. 

The shipments come as China imposed significant tariffs on canola from Canada earlier this year. Last year, nearly all of China’s 6.39 million tons of canola imports came from Canada. 

Monthly data from the U.S. government showed that canola oil usage in U.S. biomass diesel production continued to sit about 50 percent lower than last year due to uncertainty regarding U.S. biofuel policy. 

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.