(Resource News International) –– The market for cash canola has gotten weaker over the last few weeks, just as producers begin harvesting the oilseed.
Jerry Klassen, manager of GAP Grains in Winnipeg, said there have been steady deliveries from farmers over the last couple of weeks.
“We had $10 a bushel here earlier in August, and farmers were quite aggressive in selling at those levels,” he said.
It doesn’t appear as though exporters are having trouble finding product at the moment, which in turn will not make the market any stronger, he said.
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“I think exporters are fairly well covered right now for their nearby requirements,” he said. “It looks like the futures market spreads have widened, and that’s a strong reflection.”
Even with the lower cash prices, Klassen still expects to see some producers take the canola right off the combine into the elevator.
“They can still take the stuff right off the combine and move it, even if they hold it there for 90 days or so,” he said. “So, we could probably see the market stay fairly soft here through harvest.”
As far as the harvest is concerned, Klassen said good progress was made over the past week in Manitoba, although some rain delays have been pushing back some operations.
With the wet growing year, most harvest procedures are slightly behind normal, which brings the prospect of frost damage into play. However, Klassen said at this point, frost would not have a huge impact on the crop.
“It might downgrade some quality as far as yield goes, but we’ve learned a frost for canola might scare the market a bit, but long-term has very little affect on supplies,” he said.
Canola deliveries to the elevator this week were garnering as much as $9.95 per bushel in Manitoba, $10.08 per bushel in Saskatchewan, and $10.31 in Alberta, according to Prairie Ag Hotwire data.
