Canola Futures Feeling the Energy

Oct 08, 2021

Tight Canadian supplies have helped lift canola futures to near the top of a three-month trading range but more recent strength – and future market direction – may be more closely tied to the energy complex.

"There seems to be a mindset shift occurring here, and its making canola become a pure energy play," said analyst Mike Jubinville of MarketsFarm.

With crude oil, natural gas, and other energy markets seeing strength around the world, Jubinville said canola appears to be getting caught up in the updraft. As long as the bullish momentum is being maintained in the energy sector, it's hard to envision canola falling back in any sustained fashion, he added.

Rapeseed grown in Europe is a major feedstock for biodiesel production there, with rapeseed futures trading at record high levels. Jubinville expected activity in European rapeseed would be a key feature to watch in the Canadian canola market.

"(But) if we have a change in momentum in the energy sector, that will extinguish this current rally," he added.

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Video: Learning to Wrench From Dad the Hard Way

Harvest is a week out and the farm picked this week to fall apart. The truck needs a battery, the barn curtain's got a problem, and the corn and beans are telling us we're out of time to get it all fixed.

So it's a full day of wrenching. Tork supervises while I get the truck back running, then we're out at the hog barn where one rusted up part has the whole curtain system hung up. Ladder work, cable work, and a little dad-and-son disagreement about the right way to do it. We close it out walking the fields, shelling beans and checking corn, because whether everything's fixed or not, harvest starts when harvest starts.

Chapters: 00:00 Everything breaks the week before harvest 01:00 Tork supervises while I fix the truck 12:30 Out to the barn to find the curtain problem 14:30 One rusty part hung up the whole curtain 20:00 Running the curtain cable from the ladder 24:00 Walking the beans and corn before harvest 26:30 Wrapping up

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