An analyst says the canola market is poised to push higher over the next couple of months, as better-than-expected weather across the Canadian Prairies is very likely to spur on farmers to begin their spring seeding.

David Derwin, a commodity futures advisor with PI Financial in Winnipeg says as canola retreated prior to the beginning of May, it hit its support level of around $680 per tonne in the new-crop November contract — about the same level it was at the end of March.

He says spring planting doesn’t necessarily put pressure on canola values, and May and June can produce the highs for the year.

The November contract closed just short of $690/tonne yesterday (Wed), to which Derwin suggested canola could easily add another $50/tonne, although it would still be “in a sideways, down trend.”