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.
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:
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.