Statistics Canada Stocks Report Released Today

[charliep]

Statscan released the July 31 stocks report. Biggest surprise was canola - 2010 crop under estimated by close to 1 million tonnes.

[URL="http://www.statcan.gc.ca/daily-quotidien/110907/t110907a1-eng.htm"]July 31 Stocks[/URL]

[crusher]

That report was a real nonevent. I guess nobody believes it or they saw it coming.

[charliep]

You are right. A non event that barely rates a yawn.

The first hint the trade uses on availability is delivery patterns. Deliveries have been strong through the summer - an indication of adequate supplies. I canola would have been at bin bottoms, deliveries would have tightened and basis levels been a lot stronger.

Am amazed how my back of a cigarette formula works for canola and soybean oil. Multiply soybeans oil futures prices by 1,000 and you get canola futures.

[crusher]

I cleaned out my bins at a zero basis, thought that was alright.