Uncertainty paces Canadian canola harvest
Parts of Canada and the northern stretches of the U.S. have had a lot of rain this summer. And, now that harvest is moving across the western part of Canada -- the region that's seen the largest increases in acreage over the last year -- traders are taking their profits and leaving the market this week, reports show.
Canola futures ended Tuesday's trade slightly lower as traders headed elsewhere as harvest moves into western Canada where recent Statistics Canada data show the crop is reported to be larger than 2010.
"With the harvest moving forward across western Canada, the recent strength in the canola market was also said to be generating increased farmer selling and commercial hedges," according to a report from Dow Jones Newswires. "However, there is still enough uncertainty regarding the size of the Canadian canola crop to provide some support for prices, especially as early yield reports in some areas were failing to live up to expectations, said traders."
One of those farmers expressing some anxiety about yield potential is Agriculture.com Marketing Talk contributor NABFarmer. In his area of Alberta, the weather has been far from perfect, and that's likely going to show up in final yield tallies," he says.
"The canola where I am is poor...worst canola on this farm in 50 years. 60 acres worked down and should have another 200 worked down next week after insurance takes a look," NABFarmer says. "Lots of canola being harvested with the disc. Fourteen inches of rain in the month of June took its toll."