Winnipeg | MarketsFarm – So far this summer, canola prices have continued to remain range-bound, said David Derwin of PI Financial in Winnipeg, Man.
“On a week to week basis, we’re kind of at the low end of the range,” Derwin commented, noting C$450 per tonne has been near the low end of that range.
With the summer slowdown, there has not been much to push canola bids very far either way. Even trade talks between the United States and China haven’t generated a rally with the soy complex at the Chicago Board of Trade with its associated spillover into canola.
Compared to the last few summers, 2019 has been a little bit slower than usual, Derwin said.
However, that’s all relative as to where canola prices have been at summertime. He said prices in 2014 were around C$400 per tonne during that summer, which are lower than they are currently.
Derwin said farmers might be selling more of their canola, either as a means to generate cash flow or to clear out their bins to make room for the coming harvest.
Several traders and analysts have pointed to August 12 as being key to the markets. That’s when the U.S. Department of Agriculture releases its revised numbers on corn, soybean and prevent planting acres for 2019. The previous data was considered flawed as the USDA’s surveys occurred before farmers completed their planting.
Wet conditions played havoc across the U.S. Midwest and Plains, which very likely saw farmers switch from corn to planting soybeans. Increased soybean acres were largely expected in 2019, but the wetness may have curtailed the size of that increase. As well, prevent planting acres were also expected to be up this year.