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flag Canadian canola farmers need a C$661/ton price to break even amid low yields, high costs, and weak exports, despite trade deal optimism.

flag Canadian canola farmers may need a C$661 per ton price to break even, up from current levels around C$617, due to lower projected yields and high production costs. flag With deliveries down year-on-year and farmers holding back, a C$44 per ton premium is seen as necessary to encourage sales. flag A new Canada-China trade deal slashing tariffs on canola seed and meal to 15% has boosted market optimism, with expectations of significant Chinese imports in the coming years, though oil tariffs remain at 100%. flag Canola futures rose on Wednesday, supported by gains in global oilseed markets and the trade agreement, but concerns linger over record harvests and weak export volumes.

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