Canola Market Outlook: May 24, 2022
Weekly canola market outlook provided by Marlene Boersch of Mercantile Consulting Venture Inc.
Key Points for the Week:
Soybeans – CBOT soybeans made a new high weekly close for both old and new crop.
Outstanding old crop commitments plus new crop sales combined are at record high, reflecting the lack of Brazilian supplies beyond July.
The corn/soybean ratio still favours corn, but planting delays should start favouring soybeans in some areas.
Canola – Total canola disappearance during the first thirty-eight weeks of the crop year amounted to 11.9 million MT compared to 17.7 million MT last YTD.
Given the Statistics Canada numbers, growers in Canada have now delivered 97% of the ’21 canola production to elevators. We expect the crush to just cover domestic and USA demand to the end of the year.
We would be sold out of old crop canola and have some new crop sales on the books to secure record values for canola.