As the rally in canola on ICE Futures continued yesterday, an analyst stressed it’s not when this upswing ends, but where.

David Derwin of PI Financial in Winnipeg spoke of when canola prices were falling, and they broke through that psychological barrier of $800 per tonne on their way down.

Derwin says that would be a natural place for the prices to migrate back to.

The current upswing in canola has largely been due to speculative funds looking to get out of enormous short positions they’ve built.

He says this is a good time for farmers to take advantage of canola prices and not to be complacent — and that farmers should add additional hedges and make more new-crop physical sales.