Canola overall had a great year in 2011. Prices climbed to strong highs, demand was steady and acres were up in Western Canada. So where do we go from here? Does the price of canola continue to climb? Does profitability put us in a position where we are over stocked? Do other oils start to push back and take some of the canola space? All of us know that anything can happen.
As far as the demand side goes, demand is strong right now with domestic crush capacity increased and markets expanding. But just how far can canola go before it starts to run out of steam?
Greg Kostal owns Kostal Ag Consulting Inc. He describes his outlook as demand bullish but price negative. I asked Greg about where he thinks the canola market is headed when I caught up with him at Cropweek 2012 in Saskatoon.
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