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.