Canola Market Outlook: May 30, 2022
Weekly canola market outlook provided by Marlene Boersch of Mercantile Consulting Venture Inc.
Key Points for the Week:
Soybeans – CBOT soybeans were the best performer last week, with both old and new crop reaching contract high closes.
The US EIA report provided more evidence that the build-out in renewable energy capacity will continue to drive the soybean oil market higher, which in turn will drive the crush and the demand for soybeans.
The corn/soybean ratio still favours corn, but planting delays should start favouring soybeans in some areas.
Canola – Total canola disappearance during the first 38 weeks of the crop year amounted to 12.1 million MT compared to 17.9 million MT last YTD.
Seeding has not gone smoothly, and we will keep reviewing seeded canola acreage given the problems in Manitoba and Alberta.
It’s a short trading week and we see no reason to sell additional cash at this time.