jdpape or someone well versed on futures

[Hopperbin]

Yes yes yes yes and more yeses depending on number of questions. But that does not answer why or if futures is not working.

[bucket]

Still doesn't answer why farmers are waiting months after the original contract delivery either.

Some want to paint a rosy picture and offer advice to farmers like they haven't thought things through. Most farms are million dollar operations. I really hate being told I am a buffoon for signing 7 months early and delivering 3 months late.

[Hopperbin]

Bucket at the moment I have 15, 000 canola priced undelivered it works both ways.

[Hopperbin]

I do think compensation should be offered

[jdepape]

This demands a longer answer but currently I'm pressed for time.
Some factors at play right now:

1. Elevators that can deliver against canola futures are VERY reluctant to. A new interpretation of the rules states that the elevator has to supply the railcars to the long taking delivery. Since railcar allocations are rationed as it is, they really don't want to give up cars to a third party. End results - very little if any deliveries.

2. No deliveries leads to inverses, Inverses are supposed to signal tight stocks; but now that's not working. Stocks in the system are ample - deliveries have been more than what is needed to keep the pipeline flowing. Hovering around - and hitting - $10/bu really helped there.

3. Since stocks are good (almost the highest they've been all year), basis will be pressured. Put that together with the fact that the March is getting pushed out of whack with the rest of the world and basis really suffers.

Most buyers are now basing their prices of the May because it is more relevant to the market than the March.

Are they ripping you off? No. the cash prices you are seeing are "market-relevant". But because of the problems with the futures contract right now, both the spreads and the basis are misleading.

Bottom line - the situation sucks and needs to be addressed asap. (Which the exchange is doing.)