Final nail in Canola coffin

[hobbyfrmr]

Canola will never go back to niche markets. Farmers need canola for cash flow. Observe the large acre high efficient operators. Almost half of their land is planted to canola every year.
These guys are making lots of money.
What else are you going to grow? Well, soybeans will find a place for sure.

[ajl]

Canola is here to stay because there is nothing else to do and the industry knows that. There are also no large acre efficient operators in existence because with high land and machinery payments couple with high labour costs, those guys will be hiding from their bankers this winter with $9 canola. Red ink will flow like a river on many farms.

[hobbyfrmr]

40x9 = 360/acre. 330 COP. $30.00/ acre net.
30/acre x 1500 acres = $45,000 net. That is black ink not red.

[charliep]

Perhaps the other benefit to canola is the ability to move it when you want in most years. Canola generally has better off the combine movement than other crops. You also have several marketing channels to sell you canola the rest of the year in the spot market. You may not like the basis but you can sell it. On the other hand, it can provide signals/opportunities to farmers when the market is short supplies relative to industry sales/logistic needs.