SM Commodities Index - July 2021

19 August 2021

The latest prices and key trends from the SM Commodities Index.


A weaker short-term demand outlook sent Asian natural rubber prices lower (12%) in July. In particular, the rise of the Covid-19 Delta variant in major southeast Asian economies such as Thailand and Malaysia curtailed general manufacturing activity and reduced demand for natural rubber. 

High freight costs also limited export demand from the region causing additional downward price pressure.


Canola/rapeseed price appreciation over the past month can be primarily attributed to the downgrading of Canadian canola production prospects. Canada is the largest exporter of canola/rapeseed and its products (e.g. canola/rapeseed meal and canola/rapeseed oil).

The Canadian Prairies have experienced widespread overly dry-to-drought conditions this spring and summer. Given the ongoing dryness, trade sources have downgraded Canada’s production estimates by between one and four million tonnes below what was projected by Statistics Canada just two months ago.

The realised yields will not be known for months, but the market has built in higher prices on the expectation of smaller Canadian production this year.

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