Canola

[Integrity_Farmer]

Why aren't these companies competing to buy your grain?

[malta]

They are. Canola is still almost double the CWB grains, and I get all my money now. I have also been able to sell some of my canola at $13 and some over $12. Too bad I hadn't had that opportunity with my wheat, I wouldn't have had to sit on it until August.

[blackpowder]

I believe they are. A competitive, transparent, fluid basis instantly available at all companys.

[mbratrud]

I_F are you suggesting that the CWB will not drop its PRO's?

[Burbert]

Grain companies is callin us all the time.
They don't want our grain though. Just
wanna sell us crap!

[Hopperbin]

Before you make a dink of yourself Integrity ooops sorry I am late, take a look at where you Wheat price is headed,

http://quotes.ino.com/chart/index.html?s=MGEX_MWE.H12.E&t=&a=&w=&v=d12

[boarderbloke]

Better hold all your canola to next year I_F, then you can sell it through the VCWB.

[boarderbloke]

V as in voluntary!

[Hopperbin]

maybe it will be called
CPCWB Communist party Canadian Wheat
GPCWB Green Pary Canadian Wheat B
Or maybe they will be called,

NUPGEOPIRGOFCMDFLSUNUFCWCUPECUPWCAWCWB

I should not have to say what that stands for,

[wd9]

Not sure i understand what you mean by competing I_F. Price is set by the markets. Which is the same reason you couldn't answer the CWB benefits question. Its the same reason people shop around for brand XYZ of a television. Its market value canola, trucks, Tv's etc works off of. Once in while someone is short, but majority is market value derived.

So what exactly do you mean by competing for my 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.