In order to get Canadian farmers to plant at least the same amount of canola this spring as they did last spring, they are likely going to need a premium, said Jerry Klassen, analyst with Resilient Capital in Winnipeg.
The Manitoba Canola Growers Association says proposed canola tariff relief under a Canada-China agreement is positive, but details on canola oil remain unclear.
Jamie Wilton, trader for RJ O’Brien in Winnipeg, said he and the canola trade is watching and waiting while Prime Minister Mark Carney visits China this week.
When canola trading begins returning to normal come Jan. 5, the oilseed’s futures are likely to fall back, said Tony Tryhuk, trader with RBC Dominion securities in Winnipeg.
Canadian canola futures are poised to slip back in the short term, although the oilseed could climb slowly higher in the long term, said Jamie Wilton, trader with R.J. O’Brien in Winnipeg, Man.
China’s most active Zhengzhou rapeseed (canola) meal futures posted their largest daily gain in nearly three months on Monday, after Canadian Prime Minister Mark Carney and Chinese President Xi Jinping met in South Korea last week without securing a breakthrough on tariffs.