Current Canola Bounce

[boone]

Melvill; The last I heard of CWB getting in to Canola at high levels of discussion, the large grain companies put pressure on the fed Deputy Ag and Minister, and well they should have one of them used to work for them. But apparently they were downright threatened by major Japanese buyers. Now why would that be, were they tired of beating the board on price of high quality wheat and didn't want this kind of power they would wield punish us growers even more. Explain that for me if you would. Does no one else out here wonder how we can get price discovery on Canola when it isn't all going through the exchange. The side deals take away the Canola and you pure Winnipeg watchers only pull your pants on by the time it is being shipped.

[rain]

It sometimes gets tiring how some people in agriville always have to go back to politics. This thread started as a market question about canola.

Maybe they could set up a special area in Agriville so you guys can go there. We are suppose to be talking canola here.

[TOM4CWB]

Boone;

Fair is fair;

If the CWB is allowed to become "market choice" based... on all wheat and barley products... I would gladly welcome the CWB into marketing any grain it can do a good job with.. Canola, Peas, Beans, Flax, Oats...

You say the CWB can't do this?

Take a look at what happened today!

ODJ Louis Dreyfus Closes Hamburg Grain Trading Office
04/02 11:07a CST
By Claire Wilkinson

London, April 2 (OsterDowJones) - Louis Dreyfus has closed its Hamburg grain trading office, with the loss of two trading employees and four support staff, a company source told OsterDowJones Wednesday.

A company source said the reason for the closure of the Hamburg office was due to the changing structure of the German market where large farm cooperatives now have export trading desks of their own rather than using the expertise of shippers.

"The German market changed dramatically in the last three or four years - it was possible to run an office four or five years ago against the intervention, the barley etc., but now the market is controlled by three co- ops doing the job (exporting) themselves," the source said.

There is no reason the CWB cannot compete in an open and free market... and do very well... if it decides to do a good job and serve we farmers... fair and square!

[boone]

rain; if it helps you,take a look at melvill's comments above. The real point I was trying to make, is how functional is our Canola discovery price when side deals carry so much product away from market exposure. No more no less. And stay tuned I think we are going to design a better open market for HRS-Alberta Western Wheat,before the plutocrats do, right here with your help.

[melvill]

I was working on cleaning up after a flood in my basement last night while you guys/gals were adding to this thread. Now I'll try to respond to several of the posts at once.

Tom, I wasn't offended by your earlier post but, I have to confess, I'm getting kinda tired of there being very little discussion of anything other than CWB issues regardless of how the thread starts. My poke about SARS was a way of saying that with a little humor. Rain I appreciated you backing me up on that.

Tom, to me risk management away is more than managing "political" risk which is what the pro-anti-CWB debate is about. I believe risk management is . . . . sound of me biting my tongue before I go on a rant.

Rain, I haven't been able to find a public or transparent source for spot canola oil prices. I'll keep searching, though, 'cause now I want to know.

[TOM4CWB]

Lee and Rain;

I know crushers like CanAmera are having fun making ends meet... Canola oils are a value added product for them... they have oil packageing facilities... and as far as I can tell these integrated value chain facilities are paying the bills for them this year.

Canola Oil for Export seems to be very difficult for them to sell, at a decent price... to recover a reasonable crush margin. So the crushers sell as little export Canola oil as possible. Hope this helps!

[TOM4CWB]

Rain;

I seee Canola is bouncing down!

$10/t goes by fast doesn't it!

How many people got the 20-30cm of snow the CWB advised everyone on the planet... was supposed to have fallen on western Canada?

We got maybe 2cm.

[melvill]

rain, I looked and looked for a visible or public source for canola oil prices and I couldn't find one. The reason, of course, is that the oil isn't traded at any public market or location. The deals are made in private between sellers (crushers) and buyers much the same way as deals are made for grass seed or chickpeas or hundreds of other commodities.

There are, however, several sources for that information if you are willing to pay for it. One is a subscription-only web site www.fats-and-oils.com. Several well-known fee-for-service farm market information sources also update their subscribers with canola oil-soyoil spreads as part of their regular service since it has an important impact on their ideas of price outlook.