Canola and Wheat Prices Show Resilience Amidst Harvest Pressure

Canola and wheat prices have been volatile over the past two weeks, but according to David Derwin, Portfolio Manager at Ventum Financial, they remain on track for long-term growth. Canola has been trading between $810 and $840 a metric tonne, with the November contract closing at $824.30, down $10.90 on Tuesday.

Derwin notes that the $840 level has been an overhead resistance point, but he believes it's only a matter of time before canola breaks through this level. He points to the fact that grain markets are still pointing higher, indicating continued demand and potential for price increases.

Wheat prices have also been affected by recent events, including the conflict between Russia and Ukraine, which caused supply concerns at the beginning of the month. However, since then, wheat has stabilized, with some market fluctuations but still within a longer-term uptrend.

Derwin suggests that harvest pressure may be more evident in cash prices than futures, as this season's variable conditions across the Prairies have led to some delays and changes in production plans. He expects a premium price for top-grade commodities once harvest is complete, particularly if there are pockets of underperforming production.