*Yawn* . . . Canola
February 1, 2016
Canola continues to trade inside the range that was established in September, this has created less volatility than normal but allows for more consistent pricing. Over the last two weeks canola has lost 40 cents/bu as the CAD goes through a mild recovery which has pushed canola into the bottom third of the trading range. If the currency recovery continues, expect the futures to test $460-465/MT on March futures. Some other downside pressure on the market is being caused by South American harvest and a weaker Chinese economy. Until the range breaks look for pricing opportunities around $490/MT or higher.