Canola basis

[farming101]

Some areas saw a small improvement in basis today.
There is also a nice incentive to store till next summer at some spots in Alberta.
Close to a 1 dollar discount for Nov delivery compared to next summer.

[bigzee]

There's no money in growing canola!! It don't matter how good the basis is. Basis drops as the futures drop so really not gaining much.
Too much risk for a high input crop. Seed and fert costs arent dropping with the futures so it just takes more bushels to break even.
Oh ya book your seed and pay early for big discounts to guarantee the best varieties. LOL

[farmaholic]

Basis versus Isis....

Obviously more people would like to discuss Isis over basis on the marketing forum.

Is the good price in Alberta out to summer delivery because of the new Camrose crush plant?

Remember the days of positive basis? Goes to show that their sell price must have been higher than the exchange posted prices. Or what?

It's nice to see Canadian wheat basis/prices reflective of MGEX prices.

[farmaholic]

Export sales margins versus crusher margins...

[fjlip]

CWRS basis at Pioneer is plus $1.27 Friday.

[BreadWinner]

If a person had any guts he would lock in a basis on cwrs and wait for futures to go up. Problem with that is they have the exchange rate figured in on the basis so with futures rising you dont make the exchange on the futures difference. The smartest move would be to sell the best cash price you can find for your wheat and turn around and go long futures. Sell actual and buy paper back. Gutsy but might pay off.

[hobbyfrmr]

Bigzee, thats a jagged pill to swallow in this area. Planting the two major crops for rotation purposes only!
This reminds me of some old sarcastic farmers that would say, I hope to break even , I sure could use the money!

[bigzee]

I understand in some areas canola is the bread and butter crop. Where I live it's high risk, I have grown it and done relatively good in doing so, but I have other alternatives beside canola.
Makes me wonder how canola is paying the bills when farmers as far away as Melfort are looking for lentil seed for next yr!!

[Crestliner]

Wow lentils North of Highway 16.....bad idea for 2016.....maybe reds but definetly not greens. Melfort area will be lucky to seed next year as they are swimming in water. Hundreds of quarters wrecked with huge combine ruts full of water. A couple inches of rain in May 2016 and that country goes to "too wet acres" and crop insurances gets the cheque book out. Canola at $10.50 still a better bet if they can seed.....IMO.