WINNIPEG, Manitoba--Canola prices on the Intercontinental Exchange remained elevated but stayed rangebound after moving up and down during the week ended May 13.

July canola closed May 13 at C$747.80 per ton, C$4.30 more than one week earlier. However, prices ranged from C$735 to C$759/ton during the week with the past four sessions alternating between positive and negative daily price movement.

Analyst Jerry Klassen of Resilient Capital based out of Winnipeg said the futures remained high partially due to higher nitrogen prices, variable seeding conditions across the Prairies and uncertainty in production, causing traders to build a risk premium into the market.

He added that there are more supportive factors keeping canola elevated.

"Crush margins are still very good. Exports and the domestic crush during the summer time frame are likely going to be higher than we earlier anticipated," Klassen said.

"We still have (Statistics Canada's grain) stocks report from last week; the market is still digesting that. We have sufficient stocks through the end of the crop year, but we are seeing a bit stronger demand, which is also supporting the market.

"We're still seeing pretty good deliveries through seeding, but fresh selling from farmers, that has subsided."

Klassen said declines in Chicago soyoil could trigger selling in canola with speculative funds exiting the oilseed.

Weather still has a significant influence on this year's Prairie canola crop. High temperatures were four to six degrees Celsius lower than normal in the central Prairies, causing delayed plantings. Klassen said some farmers are deciding to seed pulse and cereal crops before canola.

"Canola is coming in last and depending on how much nitrogen the farmer purchased, it is also dictating how much canola acres are going into the ground," he said. "It's a weather market, but it's largely due to temperatures instead of excessive rainfall."

Klassen added that export demand is strong but exports delivered in August and September will have to come from old crop due to seeding delays for new crop.


Source: Commodity News Service Canada, news@marketsfarm.com


(END) Dow Jones Newswires

05-13-26 1655ET