Target prices

[bucket]

Just pull the tpa and don't put another in for a couple of weeks.

Should of suggested it 3 weeks ago they had no wheat on the books and after doing durum the graincos would have been thumbing it.

Now wheat is moving modestly but it would be nice to see them bid to fill a train.

[farmaholic]

Don't Target Prices basically keep them out of the "Futures" market? Wheats of course are a different story, domestically there is none and probably will stay that way. How long before canola's becomes dysfunctional?

[bucket]

It already is. Canola use to rarely trade at a discount to soy. Has been for 2 years now.

I think target pricing has kept it from being fluid and transparent.

Keep in mind the domestic end users are the graincos. They make the margins on both the buying of canola and the crush.

Read - zero risk at any price.

Remember when the highest price of the year was off the combine? The carryover was zero and the statscan numbers still showed half a million tonne carryover.

Numbers never get zeroed out or properly accounted for. Makes the system questionable.

Look at soy. They had been importing and harvest is now running late. Soy is moving as fast as its coming off the field. Not long ago basis levels were plus 3 bucks a bushel. Pipeline was empty. An earlier harvest would have smoke and mirrored some of that. Not now. Even a record soy crop will be gone. And the lower the price, the quicker.

More reporting transparency in the states for sales both in old and new crop indicate the beans are or will have to move.

Lots of factors but in Canada we have no info to look at. Like daily or weekly sales data.

So we get on TPAs with vertically integrated companies that don't have to report shit. And they make it both ways.