Even at record high levels, one analyst believes current canola prices have the ability to rise some more.

Mike Jubinville with MarketFarms points to European rapeseed currently selling $100 a tonne higher than Canadian canola. The gap is usually $40 to $80 a tonne, which takes into account the overseas transportation and shipping costs.

“As high a price as canola is in seed value today, its value and relationship with competing oilseeds and meal products, canola is not overly expensive,” Jubinville said in a webinar last Thursday. “It’s going to be due for corrections at time for sure, but it is not overly expensive.”

Jubinville says new crop prices are upward of $20 a bushel fall delivered.

“I can’t imagine that’s not worthy of some thought for forward contracting, especially in those areas where the soil moisture profile is favorable,” he said. “I would consider doing some forward contracting, but at this point only dipping your toe in the pond.”

Jubinville projects current crop year ending stocks are already expected to drop as low as 1.1 million tonnes.

“We’re going to need supply to carry us through August and probably September before new crop comes on line.”