New Crop Canola Bids Continue To Drop

Old- and new-crop canola bids in Western Canada continue to deteriorate, with producers less than happy with the situation.

"The deterioration in canola futures at ICE Canada and soybeans at the CBOT have translated into some pretty low cash bids in Western Canada," said Ken Ball, a broker with Union Securities Ltd.

"There might be the odd location looking to cover needs, and in turn some firmer bids, but for the most part, values have been declining to match the weak futures."

There has been little in the way of news to agitate the large commercial players in the market, Ball said.

"Normally at this time of year, there are dryness concerns in the soybean growing regions of either Brazil or Argentina," he said. "This year there just has not been any worries."

Add in the fact that domestic canola supplies in Canada are sitting at some pretty large levels, and that there don't seem to be any soybean shortages anywhere, cash bids have no choice but to weaken, Ball said.