June 2018 Canola Prices Recap

Canola prices in the month of June dropped by 4%. Granted, we saw the highs of the market nearly touch $540 CAD / metric tonne in May, the market had some significant pull-back in the last two weeks of May before slowly grinding lower in June. 

Canola Prices

For our GrainCents readers, we’re watching a variety of factors that might affect canola prices: 3 are bearish, 4 are bullish, and 1 is noise. Given some of the ongoing trade issues, there is definitely some musical chairs that are being played in terms of vegetable oils and feedstuffs, two industries that canola has a fairly significant presence in.

No more is this presence more known though than in China. There have been some trade wind rumours that China could increase their imports of canola as they look to implement 25% import tariffs on US soybeans on Friday, July 6th. However, there are some issues that could potentially impede more canola heading to the People’s Republic.  

Among this and other major factors, for GrainCents readers this past month, we delved deeper into topics such as:

 – How the June WASDE helped canola prices find a bottom

 – Stats Canada’s estimates for canola acres in 2018/2019

 – The USDA’s estimates for canola acres in 2018/2019

Heading into the second half of the year, buyers and sellers of grain need actionable insight to make sense of ongoing trade tensions, supply and demand factors, and market behavior. We’re going to see a few wild swings in canola prices as the summer months progress, and you owe it to yourself to stay on top of the markets.

That’s why we’re offering a free three-week trial to GrainCents, our exclusive sales recommendation service that holds a 93% success rate on getting farmers the best price possible. Sign up right here for your risk-free trial.

About the Author
Brennan Turner

Brennan Turner is the CEO of FarmLead.com, North America’s Grain Marketplace. He holds a degree in economics from Yale University and spent time on Wall Street in commodity trade and analysis before starting FarmLead. In 2017, Brennan was named to Fast Company’s List of Most Creative People in Business and, in 2018, a Henry Crown Fellow. He is originally from Foam Lake, Saskatchewan where his family started farming the land nearly 100 years ago (and still do to this day!). Brennan's unique grain markets analysis can be found in everything from small-town print newspapers to large media outlets such as Bloomberg and Reuters.

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