Canola caught in the doldrums, but a rally could break out

Dec 05, 2023

Farmers have seen their future earnings bleeding out for months. Anybody with unpriced canola has seen about a 20 percent drop in futures values since July. Cash prices are, of course, lower in this sort of environment.

It’s a bad way to enter winter and a puzzling one for some.

“It’s a bit of a mystery to me,” Stephen Nicholson, Rabobank’s Global Sector Strategist for Grains and Oilseeds, told me Nov. 27 as he was preparing for the GrowCanada conference in Calgary .

“Did the price get too high in 2022? Yes. Now we’re on the back side of that.”

The good news that Nicholson was taking to GrowCanada was that the outlook for canola prices is better than the present market is offering. There is new crushing demand for western Canadian canola and healthy export demand.

Across North America, demand for renewable diesel feedstocks like canola is surging. Currently, most demand comes from the West Coast, but more processing capacity is coming online in other parts of the continent as part of a long-term trend that is not abating.

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Video: Home Grown Ontario Tulips

Ontario’s flower sector is blooming ??

With more than $1 billion in farmgate sales and over $650 million in annual exports—much of it centred in the Niagara region—Ontario growers are a major force in Canada’s floriculture industry. In fact, the province produces roughly 50% of all flowers grown in the country, serving a market of over 100 million consumers within a one-day drive.

It’s a powerful example of how strategic location, cross-border access, and strong production capacity come together to support both local agriculture and global markets ??

?? Watch as Andrew Morse, Executive Director of Flowers Canada, shares insights and the full story behind Ontario’s tulip industry and its thriving flower sector.