Canola Market Outlook: May 9, 2022

Written By SaskCanola

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

Key Points for the Week:

  • Soybeans - For the week beans closed down sharply July was down 66 cents per bushel but remain strong compared to a year ago. Markets remain extremely volatile.

  • Funds were sellers of soybeans.

  • Crush margins for soybeans and canola remain excellent although slightly weaker on rumours that Indonesian palm oil exports would soon resume.

  • COVID-19 is a big problem in China and traders consider this could reduce protein demand.

  • We have a new WASDE report on Thursday which will be watched closely particularly the USDA’s early estimates for 2022/23.

  • The corn/soybean ratio favours corn planting rather than soybeans even though fertilizer prices are higher.

  • Statistics Canada reported their estimate of March stocks at 3.94 M tonnes which was lower than the trades estimates.

  • Oil represents a record share in the crush margin which we feel over values new crop canola.

SaskCanola
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