Canola Prices Continue Volatile Trend Amid Crude Oil Fluctuations

Canola prices have been experiencing a volatile trend in recent weeks, influenced by factors such as crude oil prices, weather patterns, and harvest pressure. According to David Derwin, a Commodities & Investment Advisor and Portfolio Manager with Ventum Financial in Winnipeg, the November canola contract hit a high of $840 a tonne in late July before dropping to around $750 a tonne.

The price of crude oil was around $91 a barrel in late July before falling to as low as $74 last week and rising to $83 on Tuesday. Derwin noted that this 'pullback' and subsequent 'float back up' would have an impact on canola prices.

Weather patterns, including hail and heatwaves in July and heavy rain in June, may also have had some influence on canola prices. Additionally, seasonal trends tend to pull grain prices down into the September-October timeframe as harvest approaches.