Canola Market Outlook: June 20, 2022
Weekly canola market outlook provided by Marlene Boersch of Mercantile Consulting Venture Inc.
Key Points for the Week:
Soybeans – CBOT July soybeans were down by a big 43 1/2 cents, and Nov. was 31 1/4 cents weaker through the week.
US crush margins remain profitable.
Soybean oil reflected 9% losses in energy markets last week. However, while several countries ramp up their biodiesel mandates to help cope with the energy crunch, the demand base remains solid.
Canola – Total canola disappearance during the first 45 weeks of the crop year amounted to 12.7 million MT compared to 19 million MT last YTD.
Canola has dropped in value compared to soybeans, as the oil premium has dropped.
As we get closer to harvest – and assuming it is an average crop – we expect vegetable oil to drop, and with it, canola values.