Does the canola market have room to climb further? Supply seems to be one of the main factors in the bid for a major break through $600/MT . Carry over from 2010 wasn’t that big, and demand is still good with crushers still processing. There are other reasons to think that supplies will remain tight this year as well. The threat of unseeded acres in Manitoba and Saskatchewan coupled with worries about the crop in areas of Europe and the effects of drought in areas of China are causing speculation about lower than expected volumes. As everyone knows when volumes drop and demand is strong it means that higher prices will continue.
Jonathan Driedger of Farmlink Marketing Solutions keeps a close eye on the canola market, and believes that those tight supplies as well as other reasons could push canola higher still. I spoke with him recently about some of the factors affecting the canola market, what could push it further, and what could potentially drive it down.
See more conversations with Jonathon Driedger and FarmLink Marketing Solutions HERE.
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