MarketsFarm — Canola came out of Canada Day continuing to build on gains made going into the holiday, largely due to spillover from the Chicago soy complex.
The U.S. Department of Agriculture last Friday released its planted acres report, which saw soybeans lose four million acres from the 87.5 million planted in 2022, leading to a bullish reaction on the Chicago Board of Trade.
David Derwin, commodity futures advisor for PI Financial in Winnipeg, said patches of dry conditions on the Canadian Prairies added to a sharp upswing in canola values.
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“But people are saying things look really good,” he cautioned, noting much of the region needs good rains.
“Anything is possible when you got a weather-driven environment,” he added.
He pointed to the major resistance of $760-$770 per tonne in ICE Futures’ new-crop November contract, which in winter had been canola’s support level.
“Historically these weather-driven spikes… often start to roll over coming into the end of June and the beginning of July. We were at $610 and we’re at $760, so that’s a big move in just over a month,” Derwin said.
“This certainly gives an opportunity for people who haven’t done much on the marketing side to look at some options at these levels, to put a floor in some really excellent prices.”
— Glen Hallick reports for MarketsFarm from Winnipeg.
