With the tariffs on Canadian canola seed, oil and meal going into China, it would be natural to think that farmers would be seeding less canola next year.
However, canola prices are faring better than many other commodities.
Although seeding is five or six months away, producers are already ordering seed, cleaning seed and making plans for next year.
No new crop price contracts are out, but canola futures prices for next November are basically on par with current prices.
Elevator and crusher cash prices right now are above $13 a bushel, which is about the same as a year ago.
Meanwhile, spring wheat prices are a bit stronger and barley is similar to last year. However, durum prices are lower with both lentil and field pea prices much lower.
Predicting where prices may go over the next year is very difficult, but based on current prices, canola still pencils out as one of the top options for net returns.
This is despite canola planting seed remaining expensive and nitrogen fertilizer prices being elevated.
While it would be logical to assume a reduced canola acreage next year due to the tariff situation, current indicators would point to as many or perhaps even more canola acres next year.
