MarketsFarm — As better-than-expected weather across the Canadian Prairies is very likely to spur on farmers to begin their spring seeding, the market is poised to push higher over the next couple of months, according to an analyst.
“We have come down to the low end of the range,” said David Derwin, commodity futures advisor with PI Financial in Winnipeg.
As canola retreated prior to the beginning of May, Derwin noted it hit its support level of around $680 per tonne in the new-crop November contract — about the same level it was at the end of March.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Spring planting does not necessarily put pressure on canola values, he said, and May and June can produce the highs for the year.
The November contract on Wednesday closed just short of $690/tonne, to which Derwin suggested canola could easily add another $50/tonne, although it would still be “in a sideways, down trend.”
While farmers will soon be extremely busy with their seeding, Derwin cautioned they should not take their eyes off of the markets, and to take advantage of any positive opportunities.
Reports said farmers in southern Alberta were already in the fields, with the province getting the warmest temperatures on the Prairies.
Moving eastward, conditions become a little more wet, but normal and above-normal temperatures could see farmers heading to their fields as well.
— Glen Hallick reports for MarketsFarm from Winnipeg.
