Canola Price Outlook Strong, AAFC Predicts Record-Large Acreage
The latest Agriculture and Agri-Food Canada (AAFC) report has been released, providing insights into the upcoming crop year's prices for various crops. The report highlights changes in supply and demand estimates, geopolitical factors, and average price predictions for the entire crop year.
On durum, the price estimate for No. 1 grade with 13 per cent protein increased by $10 per tonne from last month. However, AAFC doesn't expect a significant price premium to be maintained. The average price for durum is actually a couple of dollars per tonne less than the average price paid to growers in the previous crop year.
The average price for No. 1 CWRS wheat has also increased by $10 a tonne, making it $41 a tonne higher than last year's average price. Spring wheat is predicted to maintain a strong price premium over durum, which is usually the opposite scenario.
Barley prices are expected to remain relatively stable, with exports forecasted to drop this crop year. The prediction for feed barley has increased by $10 per tonne compared to last month and is more than $20 per tonne above last year's average price.
A notable decline in Canadian oat production is predicted this year, resulting in an increase of $15 a tonne in the predicted price compared to last month. The price for canola has seen the biggest move, with AAFC increasing its crop year prediction by a whopping $55 per tonne.