The canola market has been slowly grinding higher through our ongoing challenges with China.
That's according to Mike Jubenville, the Senior Market Analyst with MarketsFarms.
He gave producers a look at the grain markets for 2020-21 as part of the Ag In Motion's Discovery Plus event.
Canadian seeded acreage for canola this year is about 20.8 million acres a little less than what we saw last year.
Jubenville expects production will be higher, adding that here in Canada we will likely be running at crush capacity.
"Right now I'm projecting about 19 1/2 million tonnes of canola production for 2020, but the demand for the canola product is actually quite powerful."
Looking forward on the canola market, he thinks it could trade at $20 a tonne higher than what we saw in the current marketing year.
Meantime, he says world wheat ending stocks are still building this year.
When it comes to the big picture for wheat, he's expecting a steady and still downward movement, accompanied by some short term bumps.
"I suspect that here in the near term it's going to be hard to rally wheat. As long as the corn market is in the doldrums and the Russians, Ukrainians and even the Europeans are fairly aggressive out of the gate as far as the wheat exports."
He notes midpoint Saskatchewan with a 2 or 3 Hard Red Spring Wheat, 13 or 13 and a half per cent protein - once the price gets above $6.50 a bushel, maybe $7 in Alberta, that provides a cap on the marketplace.
Jubenville's grain market presentation is available on the Ag In Motion's Discovery Plus event site.