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Canadian canola farmers need a C$661/ton price to break even amid low yields, high costs, and weak exports, despite trade deal optimism.
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.
With deliveries down year-on-year and farmers holding back, a C$44 per ton premium is seen as necessary to encourage sales.
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%.
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.
Los agricultores canadienses de canola necesitan un precio de 661 dólares canadienses por tonelada para alcanzar el punto de equilibrio en medio de bajos rendimientos, altos costos y débiles exportaciones, a pesar del optimismo del acuerdo comercial.