Questions on Canola Basis?

[TOM4CWB]

Boarder,

If you want to plan ahead... there are decent basis contracts for May 2011.

I just did one at $15/t under... $13.80/bu.

Logistics are tight this year... but it looks like movement is there if preplanned and time to put the sale in place.

[boarderbloke]

TOM, -15 MAY is good, did it drop recently, or is that where it's been hanging?

[TOM4CWB]

Boarder,

At local elevator in Killam.

Would be surprised if not anywhere in Alberta.

Logistics is the issue... things are backed up...

[charliep]

If you look at the CGC numbers, about 1.5 MMT in the system. Canola exports and crush to the end of January about 6.7 MMT or a pace of about 1.1 MMT/month. Deliveries 6.9 MMT. Need to see the commercial inventory come down before basis levels start to tighten.