Canola prices at a decent level for now, analyst says.

The ICE Futures November canola contract is holding its own. 

It peaked at around $800 a tonne earlier this month and has now traded around $750, which David Derwin, a portfolio manager at Ventum Financial in Winnipeg, said is still at a good level. 

“Definitely the pattern and the trends are much more supportive of soybean oil and canola oil than they would be for some of the other crops, so I’m still in an overall uptrend,” Derwin said. “But again, at this time of year, we always have to keep in mind that coming into the end of July, there tends to be some weakness in canola and also in some of the other exterior markets, like crude oil, which has its seasonal highs coming into the end of June.” 

Derwin said barring any weather-driven concerns, decent crop progress appears to be weighing on prices heading into fall. He said canola has held up better than crude oil over the last two weeks, especially with the conflict in Iran dragging on.