Nexera 715 Canola, the speciality high oleic acid canola.

[flapjack]

Much Nexera 715 canola was grown in the Central Peace region of Alberta in 2002. The canola was seeded with the expectation that a $2.00 per bushel premium would be avaiable on all of the Nexera 715 canola that was produced provided that the oil profile met the specifications in oleic acid content.

This year much of the Nexera 715 canola may be grading as #2 and #3. Assuming that all of the Nexera 715 meets teh speciied oil profile, questions arising are:

1. Is there a market for the #3 canola that includes the $2.00 per bushel premium?

2. What is a resonable price discount for #3 canola versus #2 and #1 canola?

3. Assuming that Nexera 715 #2 canola is definately acceptable, what is the price discount versus #1 canola?

[melvill]

The first question is: Was your Nexera produced under contract? If so, make certain that you read the contract.

One Nexera contractor that I talked to this morning is accepting #1 and #2 on their contract. #2 is discounted by $13/tonne. #3 must be delivered to the company but the seed is not subject to the $2.00/bushel premium. #3 Nexera is priced like any "standard" #3 canola.

As for a "reasonable" discount for #3, that's really hard to pin down. Buyers I'm talking to are saying the discount depends on whether downgrading is on account of green or heating. There's quite a difference in discount depending on what the cause is.

[TOM4CWB]

Melville;

With high damaged (indicated by brown seed centers)seed counts, the oil profile is substandard, this thus seed really causes problems in the oil crushing process to maintain Canola oil quality. I believe this is much the same issue with spring threshed seed.