However, it is tough to justify buying new crop canola at these levels. They definitely don t work into crush margins very well. There is also uncertainty because of the long positions in Chicago. If we see short-covering in Chicago, canola prices could even go higher. In the July contract, we did see some of the usual Japanese business this week.
Farmers aren t selling right now as they are more concerned with seeding.
There really seems to be a lack of demand in old crop canola.