Canada: For canola, the only certainty is volatility

MarketsFarm — After starting this week with losses, canola bounced back with back-to-back gains, raising prices by more than $20 per tonne for old-crop after falling back $4-$5 on Monday. Errol Anderson, an analyst with ProMarket Communications in Calgary, emphasized there will be a good amount of volatility in the markets, with wide swings possible from day to day. “Part of it is the amount of liquidity that’s pouring into these markets,” he said, as funds awash in money are “looking for a home.” Anderson pointed to the wheat market as an example. “Wheat is rallying as well, yet we just got a pretty good shot of moisture and the Black Sea export prices are coming down. To me, this is a movement of the funds,” he said. “It puts my antenna up that we are going to be in for some choppiness. As strong as we are today, we can be down tomorrow.” Other supportive influences for the Canadian oilseed include tight old-crop supplies and persisting dryness across much of the Prairies. While ...