Canola Market Outlook: April 25, 2022
Weekly canola market outlook provided by Marlene Boersch of Mercantile Consulting Venture Inc.
Key Points for the Week:
Soybeans – Soybeans and soybean products ended down double digits on Monday with 1% losses.
Both old and new crop soybeans continue to push up against historic highs and while the long-term demand for US soybeans remains potentially high as Brazil runs out, the market is in a period of consolidation.
Canola – Total canola disappearance during the first thirty-seven weeks of the crop year amounted to 10.9 million MT compared to 16.1 million MT last YTD.
AAFC is still using a seeded area of 21.7 million acres, which would be 3% smaller than last year’s seeded acreage. Given the strong price signals by canola, we think this is wrong and are using an increase acres for 2022. - The StatsCan crop production estimate is due on April 26th.
We like the new crop prices and, provided we have most fixed prices covered, would sell at least 50 percent of expected production.