Increasing canola prices are leading marketers to recommend growers take advantage of the higher prices by selling their remaining 2019 crop, according to Barry Coleman, executive director of the Northern Canola Growers Association.
“We are seeing some June market strength, which we typically do, and marketers are saying we are getting close to where growers should be completing old crop sales,” he explained. “I expect we still have 20-25 percent of last year’s crop still to market.”
The latest market figures for canola have crusher cash prices in a range of $15.16 and $16.30 per hundredweight for the week ending June 12, which is an increase in price from a few weeks prior, according to Coleman. He added that the futures contract for the week settled above the recent averages after several market attempts, and closed at $467.80 per ton on the ICE market on June 10.
“Those two things indicate things are looking up for canola,” he said.
Also, recent news out of China revolved around the decreasing of their food prices because of increased pork production, which indicates the country will be increasing their imports of feedstocks, such as soybean and corn to feed the growing animal numbers. Coleman also noted that the increase in soybean imports will be good for canola.
In other market news, Brazil’s currency, the real, has strengthened 19 percent against the U.S. dollar, which means soybeans out of South America are currently more expensive than those from the U.S., Coleman said, which has been helping U.S. oilseed sales.
However, the Canadian currency has be strengthening lately, which has been holding back even further price advances for canola.
“Overall, the prices are in a good situation, with prices higher than they were last year at this time,” Coleman noted.
In checking the progress of this year’s crop, 91 percent of the canola is planted, which is close to last year’s pace, and 56 percent of the canola crop has emerged.
“We have had a few reports of flea beetle populations jumping over the weekend,” Coleman said. “Growers should consider scouting their fields 20-25 days after planting and continue to scout through the two-leaf stage to make sure they don’t have any issues with flea beetles.”