Canola futures prices may test the lower end of a new range in 2023-24, says an analyst.
MarketsFarm’s Mike Jubinville thinks the new floor for canola is around $700 per tonne, which it hit towards the end of March before rebounding.
He thinks that number could be in the cards again because of a few bearish factors.
The first is the size of the 2022-23 crop, which Statistics Canada pegged at 18.1 million tonnes.
The agency has increased production of the previous five crops by an average of 700,000 tonnes between its December estimate and the final tally.
Jubinville believes that will be the case again this year. He thinks the actual size is closer to 18.6 million tonnes.
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