Old crop canola prices keep on rising, which is good for those growers who still have some unpriced product available.

“I think the next pricing opportunity could be generational, might be $18, $19 or $20 (a bushel),” said Neil Townsend, chief analyst with FarmLink Marketing Solutions. “But there is a risk that when the supply gets so tight, companies move to a no-bid structure, and they just say ‘look it’s sold out, we can’t put together a cargo of it'”.

Townsend notes the domestic crushers can take on smaller lots, as opposed to 55,000 tonne ships.

He believes the market is going higher and the calendar is in the producer’s favor.

Townsend expects new crop canola prices will continue to rise if Western Canadian farmers follow through and don’t increase seeded area by one or two million acres.

The March canola contract closed at $753.60 a tonne ($17.09 a bushel) on Wednesday. The new crop November canola contract was up $5.10 to end trading at $578.70 a tonne. ($13.13 a bushel)