May 2018 Canola Prices Recap

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:

 

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.

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.

Most Recent Posts
Dec. 7 - Will Canola Prices Rally on ABARES, StatsCan Reports?
December 07, 2018 Brennan Turner
Grain prices are mostly all in the green this morning, led by canola prices, which are finding some strength recently thanks to a slightly bullish StatsCan report and a weaker Canadian Loonie.
October 4: Corn Prices Edge Higher With October WASDE in Focus
October 04, 2018 Garrett Baldwin
Corn prices ticked higher Thursday as traders and analysts began to speculate on next week’s release of the October WASDE report.