Rains in the Canadian prairies have brought relief for a parched canola crop. But with hot and dry conditions forecast to return to the region, as seen via Gro’s Explorer app, the reprieve may prove only temporary.
The recently improved weather conditions hit canola futures prices, which are 7% below contract highs reached just last week. New crop cash prices have also retreated. Gro’s Drought Index, weighted to highlight canola crop areas in Saskatchewan, also shows significant recent improvement, although drought readings are elevated compared with previous years.
But weather conditions can change rapidly, and in the context of high global demand for many vegetable oils, any renewed deterioration in growing conditions can reverse the recent price slide for canola, an edible variety of rapeseed. Stocks of Canadian rapeseed and US soybeans are currently at minimal levels, and adequate new crop supplies will be necessary to keep prices in check.
Canada is the top rapeseed producer worldwide, with production concentrated in the prairie provinces of Saskatchewan, Alberta, and Manitoba.
Gro’s Growing Conditions app, which is part of the Gro Explorer app available to Gro Standard subscribers, highlights key conditions such as vegetative health, soil moisture, and evapotranspiration for every district and crop around the world. Using the app to visualize changes offers greater clarity as forecasts shift day by day, and can be particularly useful during volatile weather conditions.
Join us on June 17 and June 22 for a webinar to learn how Gro's Growing Conditions app can help you form the most detailed picture of growing conditions and mitigate weather-related risk.
This insight was powered by the Gro platform, which enables better and faster decisions about factors affecting the entire global agricultural ecosystem. Gro organizes over 40,000 datasets from sources around the world into a unified ontology, which allows users to derive valuable insights such as this one. You can explore the data available on Gro with a free account, or please get in touch if you would like to learn more about a specific crop, region, or business issue.