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Rivers, MB | What are your thoughts on canola markets. We seem to have more bearish news than bullish news but the price keeps creeping up.
Samonella problems in canola meal coming out of our crushers, China "saying" they won't take canola that is blackleg free, and alot of wet canola being dumped on the market in the last month across all 3 provinces, and a record crop of soybeans in the US (albeit a slow harvest) and a high CDN dollar. Those factors should all have been weighing on prices. Or would the rise on prices been that much quicker if those factors hadn't come into play. It tells me that the market has some very solid support in the 380-390/tonne range. Where do you think the market will go from here?? The basis seems to have widened in the last month as alot of canola has been pushed into the system when harvest happened in November.
My prediction is that basis levels will narrow as full blown winter happens and that futures will climb to about $440 by mid winter.
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Canola prices
