Good value available on old and new crop canola in Canada
Canola Seed & Rapeseed
Canada
Published Jan 13, 2022
Tridge summary
Growers should seriously consider selling old crop canola and locking up some new crop production at today's values, says an analyst. Marlene Boersch, managing partner of Mercantile Consulting Venture, said $23.50 to $24 f.o.b. the farm for old crop canola and $17.50 to $18 for new crop are good values depending on location. "These are some very, very reasonable targets," she told growers attending the Saskatchewan Crop Organizations 2022 conference.
Original content
Boersch encouraged farmers to book some new crop production at today's values but keep some to play with too because it is dry heading into 2022 spring planting. Canola supplies are expected to remain tight into summer due to the good pace of crush. She is forecasting a paltry 426,200 tonnes of carryout for the 2021-22 crop based on nine million tonnes of crush and 4.76 million tonnes of exports. Crushers need to process a healthy amount per year to maximize margins, so they have a vested interest in keeping product flowing through their plants. Canadian crushers processed 3.1 million tonnes of the crop in the first four months of the 2021-22 campaign, down 11 percent from the same time last year. Meanwhile, exports have been decimated. Year-to-date shipments are down 44 percent from last year's levels. Boersch expects a seven percent jump in Canadian plantings to 22.5 million acres in 2022. She is forecasting a big rebound in production to 20.9 million tonnes, up from what ...
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