Canola Market Outlook: June 13, 2022

Written By SaskCanola

Weekly canola market outlook provided by Marlene Boersch of Mercantile Consulting Venture Inc.

Key Points for the Week:

  • Soybeans – CBOT soybeans hit contract highs on both old and new crop, but surprisingly faded following the USDA report.

  • Crushers continue to compete for soybeans given still very profitable margins.

  • We think the corn/soybean ratio needs to be about 2.30 to encourage growers to sell soybeans.

  • Canola – Total canola disappearance during the first 44 weeks of the crop year amounted to 12.5 million MT compared to 18.7 million MT last YTD.

  • Vegetable oil markets have weakened after Indonesia started pushing palm oil exports, with a target of at least 1 million MT of crude palm oil and derivatives.

  • We expect stocks to stay tight through to November, then prices will ease either via futures or basis.

SaskCanola
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