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Canola prices have been dropping like a stone. The November futures closed Wednesday below $420 a tonne. Last week, prices were around $460 a tonne and back in early June, prices were in the $480 a tonne range. The futures price is now at its lowest level since back in March. Of course cash canola prices for old and new crop have quickly come down as well. At their peak, old crop cash prices were approaching $11 a bushel. Now they’re way under $10. Producers may assume that it’s the recent moisture in many parts of the Prairies that has improved crop prospects and caused prices to drop. While that may be one of the factors involved, market analysts say there are many external factors at work. Soybean prices are down and wheat and corn futures have also tumbled following the general downturn in the stock market and a softening price for crude oil. Canola can’t buck the overall trends in the marketplace. Many traders are commenting that with prices now below $10 a bushel, farmer selling has all but ended. There’s a general expectation or at least a hope that prices will recover. Maybe they will. However, except for the big price run in 2008, prices of over $400 a tonne have been rare and short lived. Nothing in the marketplace is ever assured. I’m Kevin Hursh.
Kevin Hursh, PAg, CAC
For current grain prices, visit www.dynagra.com