Canola prices show strength in 2021 – DiscoverWestman.com

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The market has been positive for canola, with producers posting record prices in 2021.

The industry has seen canola supplies tight with the latest Stats Can figure putting harvests at around 12 million tonnes.

Chuck Penner, president of Leftfield Commodity Research, says we’ve seen an increase in demand from our domestic crushers, but it’s really hurt our exports.

“So a great demand from various countries, US, Europe, China. Good demand from there, but we just didn’t have the canola to supply them. So that got us. at record price levels. We canola futures have gone up over $ 1,000 a tonne. “

However, he says, in recent weeks the market appears to have stabilized.

“There are all kinds of allied markets. So things like soybean oil, palm oil, that sort of thing. There we see more sweetness in the market, so even though the canola supply is much tighter than any of these other crops. It remains to be seen if it can continue to rise where these other markets start to fall a bit. “

Penner notes that another highlight for canola in 2021 was the announcement of three new processing plants.

“Some of them are built on the premise that we will have an expanded mandate for biofuels in Canada that will require more canola oil. It is therefore very positive. The positive things are that the national transformation tends to be much more stable. geopolitical intrigues, disputes, etc.

Viterra, Cargill and Ceres Global Ag Corp have all announced plans for new canola processing plants in Saskatchewan that will add more than four and a half million tonnes of crushing capacity per year.

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