Market Morsel: No canaries in the canola.

Grain | 7th May 2021 | By Andrew Whitelaw

Author

Andrew Whitelaw

Market Morsel

Woo woo wee woo very nice.

I think that is how Borat would describe the Canola market at present. In recent weeks I have spoken about the fundamentals of the canola market, see ‘Canada poutine on the fireworks’ and ‘There canola be one’.

The trend has continued with further increases in the past week. The charts below show the trend of weekly average price over the past week. One thing to note is that these are based on advertised bids, and we know that there are higher pricing levels out there.

On average however our basis levels have slipped somewhat. At the moment though the flat price offered to growers is strong.

Fundamentally large parts of Canada remain dry, hampering crop development. Whilst there is risk in forward selling due to potential local production loss, prices are unlikely to reverse the gains of the recent months soon.