Analyst sceptical about a return to $20/bushel canola prices

The sharp drop in canola prices caught more than a few people off guard last month.

But farmers hoping for a return to canola prices in the high teens will likely be disappointed, according to Mike Jubinville, the senior market analyst with MarketsFarm.

Speaking to farmers during a recent webinar, Jubinville described the price drop of canola as the March Massacre.

“Canola dropped about $100 a tonne in a very short period of time on the futures. To us, those losses seemed well over done, and we are seeing elements of a corrective rebound in the process,” Jubinville said. “Still, these macro economic worries that linger create a bit of a wet blanket on rally potential not just on canola, but I think for all commodities.”