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Canola Supply Strong, As Is Demand

Market Analyst Mike Jubinville with Pro Farmer Canada says when it comes to Canola, based on Statistics Canada figures, we should see a 21 million tonne crop. So, we have a good supply of canola to sell, but the demand element in this market is also strong.
 
Overall, he still expects to see a long-term trending sideways marketplace.
 
“Where the top end of the market is once we get into it, $11.50-$12 a bushel seems to be where it always stalls out every time we test it over the span of those number of years. The bottom end of the market, when things are looking the most bearish, lower $10 a bushel and we oscillate every one, two, three, four months one way and one, two, three, four months heading the other way. That’s kind of the environment we’re in right now.”
 
Jubinville told producers this week at Ag in Motion that it's important to watch what’s happening on the world's stage.
 
He notes trade tensions are a major factor impacting the agricultural commodity markets right now. The real focal point right now is between the U.S. and China; with China putting a 25% retaliatory tariff against U.S. Soybeans.
 
He says, as a result, China has started buying more from other countries like Argentina and Brazil.
 
“That kind of uncertainty, that is thrown into the marketplace, has certainly affected the soybean market and in concert, you know the investment money, the speculative money and such that play in these commodity markets. They’ve pulled their long positions out of soybeans and it’s had a negative effect on other commodities as well that are caught up in the Chinese/U.S. battle here. They're caught up in the emotion of fear that has gripped the ag markets and driven prices down, certainly from their highs in May.”
 
Source : Steinbachonline

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