Canola values remained “not exactly lifeless” but rangebound during the week ended Oct. 18, seemingly unfettered by a less-than-ideal harvest season.
A cold front and Colorado low hit Manitoba over Thanksgiving weekend, delivering up to 70 cm of snow in some regions. That ought to have introduced a weather premium into markets, as the canola crop left on fields would likely stay there until a hard freeze — but prices remained subdued, probably due to harvest pressure. Despite a myriad of weather challenges, the canola harvest has moved steadily along.
In Manitoba, 80 per cent of canola got off the fields before the snow came. About 58 per cent of Saskatchewan’s canola crop has been harvested.
Since most key canola-growing regions were impacted by inclement fall weather, both quality and quantity of canola will be affected. However, it’s too soon to tell how that will impact canola’s bottom line. So far, the outcome may not be as catastrophic as weather headlines have suggested.
During the week ended Oct. 13, farmers delivered 719,300 tonnes of canola to commercial positions. Not only is that double the amount delivered during the previous week, it’s also a record high, according to data from the Canadian Grain Commission dating back to 2007.