Pricing Canola???

[agchat]

I see July prices for canola are around 614 tonne.
Yet Viterra site is only 540. Phoned and they said
they are using November prices for July till
November. What is up with that?

[charliep]

Will leave for others to comment on the canola prices (my note is you have to shop more to find buyers who need your canola). I would watch grain movement in the aftermath of the disaster in southern Alberta. Indications initially were that CP was back up and running through the Rogers Pass but there are at least some reports of major damage to bridges along the Bow River. Stay tuned.

[charliep]

Nothing to do with canola but more clarity to my comment.

[URL="http://globalnews.ca/news/675966/breaking-emergency-crews-shut-down-deerfoot-amid-fears-of-bridge-collapse/"]Bonnybrook Bridge Collapse[/URL]

[ado089]

Most, if not all, companies roll to the next futures month at least a month before the futures month expires. Same goes for options if you purchase those.

[TFLN]

Just checked, Pioneer is still over the July

[Hopperbin]

As long as the price to the farmer is still the same what does it matter what month they use. As far as rail problems to west coast I thought there was not much export business anyway for canola.

[Hopperbin]

Was thinking the local crushing plants are using up what is left

[boarderbloke]

Why would the same companies that crush canola, make export sales and drive up the price? Better to shut off the export tap and let those countries looking for veggie oil, go to the USA(seeing USDA says they have soooo much soya left) or go to S.A. or south asia! Better to keep what's left of Canada's canola supply in Canada for themselves and their crushing plants!
Look at old crop bean charts(sitting at $15.50/bus) and all over the U.S. farmers are posting about a positive basis of $0.30 to $1.10 on top of that. Another consideration is the drop in the Canadian dollar over the last couple weeks! Crushers and the companies that own them are smiling and doing just fine with the old crop canola thats coming in.
oh ya, USDA also says there is plenty of corn to last the year and fill all/any exports till harvest, so they're not crushing for the meal. There's lots of feed around,,, they so lie!

[Daylate]

I think july canola will stabilize higher after immediately switching to November. If they want it they might just base price a july delivered canola.

[charliep]

I suspect futures will not be a factor in most nearby sales. Most companies will be back to back any export sales and oil/meal sales in the case of a crush plant with farmer purchases/deliveries. I would simply be looking at price and make my decision from there. The spread on cash offers is a good indication of the future. As I have said before, I would be watching/paying attention to what is moving into the export market.