Why is Canola Price so poor

[TOM4CWB]

I agree Brave;

We need a good base supply so consumers of Canola oil can meet their needs and not be caught short needing alternate supply to switch to. Then we get more demand... and a better price for being reliable suppliers.

It worked out almost perfect this year... in the Canola supply demand balance!

[Guest]

I told stats can I would call them back in a couple years , you guys should also. and should quit talking about the miracle canola crop on here also . the buyers don't tell you SFA. you would almost think a couple posters on here are actually buyers , NOT sellers . they still are trying to tell everyone there is a huge carryover, lol.

[TOM4CWB]

Caseih

having a decent supply to fill needs gets better prices... not discounts long term.

Think big picture... long term.

Saw crush margins at meeting Tuesday...Canola margins are 60 percent less than 2 years ago... just on positive side.

Concerns crush could drop increasing carry over of Canola.

[sumdumguy]

Exactly BigZee, why do people have to blow their horn about larger than expected yields. The media blast that information around and the offers drop 10-15%.

[fjlip]

The main reason is enough of us price/sell/commit bushels for future delivery for the system to work with, NO need for a higher price, demand is filled. Sorry we are causing the prices by NOT having a Cartel. Divided and conquered, nothing ever changes, in my 40 years.

[farmaholic]

I think you hit the nail on the head Fj. Sign basis contracts, futures first contracts and they know whats coming up the driveway. Everytime YOU commit to an open-ended contact all you've done is ensure a supply. Sign a target price agreement and all you've done is commit your grain if they decide they want it. We do it to ourselves. I've even heard someone on here say they don't like DDCs- at least all is known and both are committed at the time of signing, not that one sided garbage on offer otherwise. I know a guy who signed a minus five dollar wheat basis contract last summer. Look where the basis is now(plus $45ish)...he's $50 out
of the money....ouch. But I guess no one held a gun to his head....who do you take your marketing advice from? The guy trying to buy your grain for the least possible money. ...**** me!

[stonepicker]

What are some of you expecting for a canola price? Lots were predicting 6-7 dollar canola for this fall. Canola has held up well, again, despite harvest pressure. There's money to be made with 10-11 dollar canola, at least on my farm.

[farmaholic]

When were those predictions made? Holy man, it was hot and dry in a LARGE part of Western Canada last summer. Back in June/July canola was about $530/tonne, $12.00 gross. Far cry from $6-$7!!

[stonepicker]

Couldn't find it, i guess i was delusional.

[farmaholic]

You're supposed to ask me why I didn't lock 30 bu/ac in at those prices!