Canola dropping into the 380. ..

[furrowtickler]

Everything always bottoms out before going up - like the temps after a full moon .

[bucket]

Farmaholic

I think in the states they consider it deferred pricing (dp). Most on newagtalk recommend against it.

I am beginning to think the so called open market in Canada was just the conservatives paying back the grainco and railways for their support.

I say that because Ritz and Stewart are pretty silent on the whole shipping mess.

And nothing has been done in regards to having a transparent reporting system that could be implemented tomorrow if they wanted.

[farmaholic]

Basis only might work fine if you can find one you're satisfied with on a year of tight supply but not so good on a year of ample supply, but that's okay, just roll the futures for a fee and buy them some more time.

[farmaholic]

Basis only might work fine if you can find one you're satisfied with on a year of tight supply but not so good on a year of ample supply, but that's okay, just roll the futures for a fee and buy them some more time.

[charliep]

Basis is a signal to attract or discourage delivery.

I remember about 20 years in my time with Growers Marketing Services at UGG.

I remember this day when the canola trader was in my office complaining about the fact he had a tremendous price out in the country (read strong basis) and they still couldn't get grain up the driveway. They had a ships arriving in Vancouver and didn't have supplies in the system to fill the boat. Had a farmer phone about an hour later and wonder why UGG's prices were so good relative to everyone else. Tried to explain without coming out and saying UGG was short canola relative to sales. His last sentence was if you guys are willing to pay this much today, you'll pay more tomorrow.

The elevator system did what it had to do relative to price to fill the boats. About a weak later, the canola trader was in my office with a smile of relief. An hour later the farmer is phoning me to chew me for not telling him the price was going to drop.

One of your strongest tools in marketing canola (not available and more complex with wheat) is your ability to separate delivery commitments from pricing.

[charliep]

bucket

A lot of discussion in both industry and government regarding your points about market information gaps.
At this point, not sure on the outcome.

[bucket]

What I hear from most government people is like charlie brown's teacher use to say "wah, wah, wah......"

It is disappointing to read or hear they can't figure out what is needed when a system is in place south of the border that keeps everyone accountable.

Railways are in front of the STB monthly having to explain what is going on in the states and here in Canada the railways tell the government to **** off. As do the graincos.

[charliep]

You have mandatory price and volume reporting in the US. Could happen in Canada but you are going to have to convince the federal government.

I would also note that some of the information you have been requesting is available today. CGC rain statistics weekly is a wealth of historical information on the volume side.

I also wonder why you want them. Do farmers have a need for information (read numbers) or are you asking for a system that is more coordinated and has processes to measure and monitor grain logistics performance.

[bucket]

Transparency leads to accountability.

[bucket]

So the federal government will issue fines to the railways for being a little short on the "in transit" number?