MarketsFarm — Despite the losses canola and other crops have incurred during the week of June 13, prices have remained rather high, according to a trader.
“Even though we got some big crops brewing in North America, the prices are not falling apart. There are just enough things in there to keep these markets a little bit nervous and agitated,” Ken Ball of PI Financial in Winnipeg said.
He pointed to tight supplies for a number of crops, as well as the ongoing war in Ukraine and some weather issues throughout North America, as propping up prices — including those for canola.
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“There’s certainly some room for seasonal price pressure, but it may not amount to much until of the other issues can be solved,” Ball said, noting it’s highly unlikely the Russia-Ukraine war will end anytime soon.
“We still might see some seasonal pressure going into July, if the crops develop reasonably well,” he added.
The trader also suggested upward to 80 per cent of North American crops “are heading to a really good start.”
That said, he expects prices to remain “seasonably elevated” through summer.
As for Manitoba, the wet conditions that have slowed spring seeding across that province really don’t mean too much in the larger price scheme, Ball said, as Manitoba has about four to five per cent of all the seeded acres on the continent.
“If we lose a third of that, it just doesn’t amount to enough to really matter unfortunately.”
— Glen Hallick reports for MarketsFarm from Winnipeg.
