Canola prices continue to hover around $1,000 per tonne.
Brian Voth, president of IntelliFARM Inc., commented on the reasoning behind the high prices.
"I think the biggest driver is just the lack of production in Canada, coupled with a lot of buying from China in the past six to eight months, which has really led to these diminished balance sheets on canola and a multitude of other commodities. That has continued to fuel canola prices," he said. "We went into this year with relatively low overall stocks, with a production that's sixty per cent or whatever the number's going to be of normal. Obviously, we'll get those numbers out here at the end of the week from Stats Canada on our final production estimate but it's going to be a fraction of a normal canola crop. That has kept prices up at these elevated levels and continuing to move higher because we don't have enough canola to satisfy the historical export demand along with domestic crush."
Voth doesn't see canola falling apart, barring some collapse in all of the other grains and oilseeds.
He also doesn't expect canola to gain acres in 2022, considering the dryness that remains across Saskatchewan and Alberta.