Cargill Wow

[Hopperbin]

Cargill just slapped on a 25 dollar per ton risk deduction on the new crop IMC canola contracts, if the farmer wants to trade after hours. Cannot actually do the contract until 9;30 when they say futures trading begins for the day. Is this a sign that a free fall is starting???

[melvill]

Hopperbin, give us a little more detail on what a "$25 risk reduction" is. Does that mean what often happens at US elevators for forward contracts or cash deliveries made after the markets close where the elevator "takes --- basis protection"?

[padron]

That's what it appears to be to me. Expect more risk protection trends as these markets are highly volatile - both up and down. We've already seen a tremendous widening of the basis levels - particularly on canola. Grain company profit margins are at all time high levels and moves like this will secure those margins which can be exposed to limit moves on any given day. The rich get richer.

[Hopperbin]

A 25 dollar per ton deduction for risk while the market is closed. Not sure if this is also for regular canola also, never checked, but most likely yes. Maybe I over react because never heard of it before. They are at risk of market moving down. One thing though doesn't Ice canola futures trade straight through from overnight into day futures without a break. I thought that is the way it went. They tell me I cannot trade now till 9;30 AM.

[northfarmer]

this also applies to unpriced basis commercial canola contract, as I found out at the end of today after limit down move at close.....will not apply when market opens for daily trading tommorrow......not happy about it, but still happy about canola over 700 tonne.....i do not think we are out of gas yet but I am waitingf or clear topping action