Canola futures have risen over the past week and the market may have more room to run higher amid production uncertainty, according to one analyst.
Jerry Klassen of Winnipeg-based Resilient Commodity Analysis said he expects the nearby July contract to go back up to $700/tonne in the coming weeks. The July contract closed Wednesday at $670.20.
“Maybe a bit up to $720, into that range,” Klassen said. “We’re not getting into a runaway bull market here, but if you see another $30 to $40 upside (on the July contract), that wouldn’t surprise me.”
Both the July and new-crop November canola contracts have rallied about $20 over the past week, gains that Klassen at least partially attributed to short covering.
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