Canola prices moved sideways this month but the overall trend is up. Let’s take a look at how the major contracts that we’re watching performed:
- July 2018: +0.7% or $3.90 to $532.30 CAD / metric tonne
- Nov 2018: +0.4% or $1.90 to $518.50 CAD / metric tonne
- Jan 2019: +0.5% or $2.40 to $522.50 CAD / metric tonne
- Mar 2019: +0.7% or $3.50 to $524.8 CAD / metric tonne
Canola prices have the tendency to bounce higher in May before trending lower in late June and early July. This is thanks to it being the time of year where concerns over the supply still in the pipeline are compounded by any weather premium.
On the Canadian crop movement front, canola exports for the 2017/18 crop year are running behind last year’s pace. In contrast, the domestic disappearance of canola is tracking a bit above last year’s pace. This has caused a bit of an offsetting point for canola prices.
For our Canola GrainCents readers, we went deeper into the factors weighing on canola prices. Specifically, we explored:
- An estimate on the size of the US canola crop;
- Upside price support from stronger vegetable oil futures such as soyoil; and
- The introduction of high protein canola, and what it means for your bottom line.
Another factor on everyone’s mind (and affecting canola prices)? The dry conditions across Western Canada.
Be sure to sign up for a free 3-week trial at GrainCents as this month could be the most impactful for how and when you price your canola for the rest of 2017/18 old crop, as well as a significant portion of your 2018/19 new crop production.