A market analyst says Saskatchewan farmers can expect a small downturn in canola prices in 2017.
Neil Townsend with FarmLink Marketing Solutions predicts a record-seeded canola acreage this year, which could have an impact on prices.
“The price outlook for canola is down year on year, but still relatively healthy,” said Townsend. “We’re looking at, in central Saskatchewan, an average price of around $10.75 to $11 per bushel for the 2017-18 marketing year.”
He added that there are concerns about world wheat supplies, including the U.S. planting intentions.
“We’ve got the protein story in North America and we’ve got that global corn stock lower than expected,” explained Townsend. “Wheat stock is also projected lower in the eight major exporters’ cumulative.”
Townsend said he doesn’t think the jump is too great at the moment, but added that some form of significant weather failure would push prices upward.
However, he sees limited downside risk for wheat prices, due to tighter supplies.
Townsend noted that the market could also be affected by excess moisture in parts of the northern grain belt.