Canola price discovery has many moving parts, subsets whose individual detail will never become transparent. Therefore, must constantly mine for high-level clues. While the newsflow tends to focus on headlines such as South America weather, Matif rapeseed futures & soyoil futures, to me, the most important canola demand sign is to follow North American vegoil basis levels. Price doesn’t lie and provides a demand situational summary.
When needed, particularly when soyoil isn’t, canola crushers have been able to adjust canolaoil premiums to maintain good-enough positive crush margins. A price-times-volume trade-off occurs. Renewable Fuel and food lugs the highest propensity to pay whose importance with rises with small crop. Vegoil basis direction is a must know if want to make an informed decision. Charts have just been updated. Please contact me if would like more information.