Money talks, and canola growers seem to be listening.
Although there are no good statistics on this autumn’s canola seed sales, people in the industry say farmers seem keen to plant a big canola crop next spring.
“There’s been a lot of interest,” said JoAnne Buth, head of agronomics at the Canola Council of Canada.
“We’ve had calls from growers and also dealers looking for the prairie canola variety trial results.”
Unlike most crop futures prices, which have retreated a little after impressive run-ups during and after harvest, canola prices stayed strong into December.
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Also, canola prices have been stronger than U.S. soybean prices, which usually set canola’s trend.
Market analysts often say that the markets “buy” acreage of upcoming crops to meet estimated demand by boosting prices in the months or weeks before farmers begin seeding.
Although each market is made up of thousands or millions of players, each making their own decisions for different reasons, the market as a whole can be seen to move rationally, such as bidding up prices if expected demand is exceeding expected supplies.
That appears to be happening now with canola, with 2007 crop prices firm and enticing.
Farmers appear to be responding by buying canola seed for the spring and beginning to commit acreage months before the snow melts.
“I know there’s quite a bit of interest,” said Buth.
“Price is good.”
