Canola

[charliep]

An interesting observation by a consult over the last couple of days is the level of variability in prices among buyers (sometimes 50 cents/bu plus in relatively tight trading area). No one company is always the high or the low. Depends on their sales and when they need to draw canola into the system. Another farmer was telling me about how grain companies are using cell phone texting to let farmers know when they need supplies/are willing to pay up.

If you have an understanding of price signals and how grain companies behave, you are a long ways down the road of developing a profitable marketing plan. Those that are too lazy, don't have the skill set or don't have the time are in trouble. Marketing is daily work activity - maybe more profitable than blogging on Agriville.

[charliep]

My impression (could be wrong) is that most canola farmers have a good understanding of basis and the difference between a good one and a bad one. Am I wrong?

Perhaps the biggest difference between the old world and the new one. A canola basis is a delivery/contracting signal. A CWB basis is an adjustment to convert the most PRO into a fixed payment on a given day/no delivery component.

[Hopperbin]

the second basis was what???, don't need to answer.

[Lifer]

The canola companies are not competing to buy our grain because they want to buy canola not grain.