(Resource News International) — Canola bids in Western Canada remain lower than most producers would like to see, but are profitable just the same and should present some opportunities for pricing new-crop supplies.
Market consultant Reid Fenton of the BLB Grain Group at Three Hills, Alta., said spot bids in his area of $8.75-$8.80 per bushel were decent, but so far unable to top the $9 “magic number.”
There were better opportunities in the more deferred positions, with basis levels of up to $5 above the futures from some line companies heading into the spring, he said.
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For the time being, “it appears as if we’re rangebound,” said Fenton.
While a resumption of export sales to China would give the market a boost, he was reluctant to predict which way prices would go in the meantime.
On the one hand, he said, increasing domestic crush capacity will provide good demand for canola. However, on the other hand, the longer-term global oilseed market was looking “heavy.”
From a profitability standpoint, he said it was a good time to start pricing some new crop, as producers should be making money at current values.
New-crop bids from the line companies were looking competitive and compare favourably with most other cropping options.
Fenton said farmers he consulted with in Alberta were generally looking at planting 1.8 per cent more canola acres this spring.
Malt barley acres were also likely to increase, he said, while wheat and peas will likely be down on the year.
