Canola Market Outlook: May 17, 2022
Weekly canola market outlook provided by Marlene Boersch of Mercantile Consulting Venture Inc.
Key Points for the Week:
Soybeans – The US weather forecast remains concerning with ongoing cold & wet conditions in the N Plains, and hot & dry conditions in the central and S Plains.
The upcoming USA export pace will increase as S American supplies lessen until their new crop comes in. Soybeans are undervalued to corn although they are at a record high on new crop.
Canola – Total canola disappearance during the first thirty-eight weeks of the crop year amounted to 11.6 million MT compared to 17.4 million MT last YTD.
While weather/ seeding needs to be watched, we expect Cdn. canola acreage to rise somewhat, while EU production is forecast to increase by 8%.
We would be sold out of old crop canola and have some new crop sales on the books to secure record values for canola.