Despite some increases in demand for canola abroad, and strength earlier in October, prices seem to be on a train to $440/tonne, says host Shaun Haney in this excerpt from RealAg Radio.
Viterra market analyst Terence Koshman says part of the price shift is due to harvest progress, and product being sold to bring the market back down. As for demand, the market is still looking to China.
“Demand has weakened,” says Koshman, adding that of roughly 10 million tonnes of seed export, China accounted for 4 million, while the European Union, at its peak hit about 1.5.
“With the loss of the Chinese market, even with the European gain in their demand, it still doesn’t offset enough of that canola.”
After a huge carryout last year, and the expectation of a 21 million tonne crop this year, Koshman says it’s looking like Canada could possibly see a carryout of six to seven million tonnes.
Hear Viterra’s Terence Koshman discuss the current market position for canola as a result of the soybean market, its own trade challenges, and the beginning of a movement towards ‘sustainable’ production, in this excerpt from RealAg Radio, which also includes a brief monologue by host Shaun Haney.