Canola futures have been unable to shake bearish pressure this week, as prices fell below key levels. The most active March canola contract traded $14.40 lower on Friday to C$618.40 per ton. Prices fell below the Oct. 1 low, which was a support level for the market.

Fundamentally, rising global supplies have been a bearish factor for the market. Canada is estimated to have produced a record canola crop. Statistics Canada said producers harvested 21.8 million metric tons this past season, up 13.5 percent from the previous season. Australia is also expected to harvest a bumper crop this season. 

Another negative factor has been sluggish Canadian exports. The Canadian Grain Commission said shipments ramped up to 289,200 metric tons during the week ending Dec. 7. However, cumulative exports for the 2025/26 marketing reached 2.38 million metric tons, down 41 percent from the previous season. Slow shipments to China have been a primary driver. Domestic processing has been able to offset some of the slower exports, but the country could still be facing a more burdensome supply and demand outlook.

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