Canola comments?

[Hopperbin]

Up about 10 bucks a ton today. Makes 18 dollar basis pay out 11.30 per bushel. Bunge raised street basis to 45 dollars today. I am glad for signing basis earlier and thinking to do it for Feb. delivery which is still reasonable. Seems a big push to sell canola now. Even my CFCO that Cargil forgot about is worth more as generic now. If Cargill starts asking for this canola pretty soon I can say build me bins and I will deliver. I like it when things go my way.

[boarderbloke]

big move up, considering the CAN$ also up nearly a full cent.

DEMAND!

[furrowtickler]

Cargil canola, why? Know a local farm the had over 5000ac cargil IMC ave 37bus/ac. Neighbor had about 2700ac of Pioneer and liberty ave 54bus/ac - bolth very sound agronomic farms. How does the cargil canola make sense at all? Deliveries always a problem and early this harvest no one could harvest the IMC tough b/c cargil refuses to handle tough s/o canola. They lost days of harvest while they sat and watched others around combine canola under 12 and haul it straight of the feild to elevator - drying charges were less than .20/bus. They did do some very tough wheat during that time. To me you would need at least $4/bus premium on IMC to make the numbers work, no?

[furrowtickler]

I agree furrow, cargill's CSCO just doesn't seem to yield as good as traditional.

But I think hopper was referring to canola from a prior year that cargill never took delivery of and now has a premium compared to the rest, not necessarily promoting growing it.

[furrowtickler]

I know that, just asking why, or how it pencils out for others still growing it?
Some ares may be different but the yeild and delivery in this area make it a clear lost profit. Cargil is out hard tring to sell it now and are signing up a few, just woundering why one would leave money on the table after so many stories much like hopper?

[ado089]

Would have been 56 if he would have swapped out the Pioneer for Dekalb. Haha. The IMC probably has better shattering resistance because it was all sitting flat on the ground to boot.

[Hopperbin]

I actually grew CSCO exclusively for quite a few years now. So don't really have a comparison other than I did make money growing canola. Started when they actually had a 2 dollar per bushel price advantage so was good then. They were looking for growers after a frost event wiped out the previous growers. I don't like getting hosed so this post is my outlet and way of getting even. I am honest that I have July and Sept. Canola to ship yet. June was picked up in Aug. My happy dance is that their lateness allows me to sell at higher price as it is not priced.

Actually that Bunge street price happened when they also switched to price off Jan. futures which had that carry built into it. Dec. is still 25 under. Wonder if basis can narrow this year since now we hear of Chinese buying.