Canola Markets

[blackpowder]

Considering selling last at $10 and then looking at calls when/if it hits $400. ???

[charliep]

Three charts for you with the question as too how the inverse/spreads are likely to unfold in the future. A least one will disagree but I think this market has potential to move to carry. This doesn't necessarily mean a rally in the new crop/November but rather eroding prices in old crop/not the same level of premiums in the nearby as we approach May/July delivery months.

[URL="http://www.farms.com/markets/?page=chart&sym=RSH15"]March[/URL]

<a href="http://www.farms.com/markets/?page=chart&sym=RSN15">July</a>

<a href="http://www.farms.com/markets/?page=chart&sym=RSX15">November</a>

[highwayman]

Have used Johnston's numerous times for a number of years to broker grain sales with domestic and international buyers and all experience has been mainly positive. When delays in delivery have occurred they have worked hard on our behalf to mediate alternatives. I do find though that their posted prices are sometimes unrealistic and they neglect to update there website as a ploy for producers to call them only to find out that those price levels are no longer achievable.

[wmoebis]

I don't grow or sell Canola but why are guys worried about $10 in Canada when you can get $15.25 fx (about $3) so over $18. Just across the line at Berthold ND. farmers elev.

[Braveheart]

Wmoebis, ND prices for canola are usually quoted in per cwt.

[farming101]

Without checking I believe that's for 100 pounds worth.

Spread charts
May/July and May/Nov
Potential for higher prices has been kicked down the road.
<a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/Jan%2030%20Canola%20May%20Nov%20spread_zps5kqlqqp8 .jpg" border="0" alt=" photo Jan 30 Canola May Nov spread_zps5kqlqqp8.jpg"/></a>

[wmoebis]

Thanks I see that now.

[Goodtime]

Klause, they are located in Winnipeg. May have to go back to the line companies, get paid less but at least know when and if will get paid.

[checking]

When a farmer has to pay to receive a broker's advertising, a big question mark pops up on my radar. They can go straight to ...

[jd3007]

Goodtime do you have a name? I have a fall contact with a Winnipeg company through Johnstons. Just wondering if it is the same guys.

[oneoff]

Newco comes to mind; but if you didn't mind waiting 3 years; the principal was at least finally paid.

Thats not to say that Johnstons probably had a thing to do with expediting any payment. They sort of washed their hands and I'm not sure they went to bat for anyone.

One would think they could have been a little more savy about their customers and markets at the time. Must remember all they had to lose was a commission.

[Goodtime]

I dealt with Newco a while back but thankfully about a year before they went broke. JD I will def let you know once I really find out if I don't get paid. It pisses me off that you sign a contract that you are supposed to be paid 10-14 days after unload, and I am at that plus another 16 days and counting. Likely blended and resold the oats to another outfit and won't pay the farmer until they get paid which sucks (best case scenario).