Canola

[farmaholic]

Not alot of carry in the market out to July 2019. Only about 16 bucks(36 cents a bu)....that premium can easily evaporate in a combined futures and basis move.

Spot prices also suck at some locations

[bucket]

But it will pay for the on farm storage ...right.?????..

Think of it as the privilege of storing the worlds grain on your farm...

They can't pay you but you can earn a gold star for doing it....

[farmaholic]

Its my grain until I sell it though!

[SASKFARMER3]

Im confused yes they should pay us better dollars to store the shit they want to buy.

Its a game but a big game.

Profit from not selling canola till they needed it is a extra 100000 this year.

I would say it pays.

No Viagra capital system of flood the Crushers in fall.

[SASKFARMER3]

Another thing that is hilarious this year. All My BTO friends who for years post how huge their crop is and how great its yielding and post every single 60 plus yield etc.

Silence this year.

or Were harvesting and ahead of schedule.


Not a whisper on yield.

HM

She's a Big one.


HAHAHAHAHAHA

[bucket]

As most of you know I despise grain bins ...because my money can be spent in better places for one reason...

And two ...the States built the storage for farmers and they still get to decide when they sell it....

[farmaholic]

Where does Input Capital market all their canola from their "stealing" canola contracts.

Edit...damn fat finger typing...I mean "STREAMING"!!!

[SASKFARMER3]

That was good.

Look to Yorkton and watch where the trucks are headed after harvest or during and ask who they are hauling for and you know who has a stealing contract. Hey, spell check didn't correct it.

[Nudge]

Bucket, it feels as if you are misinformed. Sure an American producer can deliver his grain now and sell later, but they have to pay storage charges to the grain co! Cheaper to store at home than in commercial facility. Over the last ten years the American system has had a massive build out of on farm storage. As for me I can’t think of a better place to invest money than storage. Lots of storage and free cash are the key during times like this.

[farmaholic]

Some local spot basis sure are "negative"!!! anywhere from -$35 to almost -$44. I guess they don't want it?!?!?!?!?


Edit, add the word "spot"

[bucket]

Bucket, it feels as if you are misinformed. Sure an American producer can deliver his grain now and sell later, but they have to pay storage charges to the grain co! Cheaper to store at home than in commercial facility. Over the last ten years the American system has had a massive build out of on farm storage. As for me I can’t think of a better place to invest money than storage. Lots of storage and free cash are the key during times like this.

You don't think the American graincos didn't take a page from what's going on in Canada....

Also don't forget the 12billion adhoc payment and many before them...

If the bins have to empty to pay input bills might as well be at the elevator...

Remember the governmentin the states built it...they also have requirements for reporting...

If I had my farm and equipment paid for....I would probably start building bins. ...and manage it differently but it's got to move and the price differential isn't typically good enough to store...

2016 and 2017 the best price for lentils was off the combine...or the risk of preselling without knowing grade which was the same price off the combine.

[Agvocate]

Some local spot basis sure are "negative"!!! anywhere from -$35 to almost -$44. I guess they don't want it?!?!?!?!?


Edit, add the word "spot"

Large part of basis is rail freight. Annual increases in freight are 5-7%. If everything else remained equal (fob levels, handling margin, etc) basis would be $2/mt wider each year to get to the same price at port to pay the railway.

[farming101]

Freight? Well I guess it depends where you farm.

[Agvocate]

Freight? Well I guess it depends where you farm.

[ATTACH]3270[/ATTACH]

Yes if you want to set yourself up to deliver against canola futures and hold the stocks in your registered elevator until the owner of the futures calls for it I guess that map would be relevant to spot basis levels in Aug/Sep. Of course Nov futures don't hit delivery until November so it wouldn't do much for movement or cash flow in the near term.

[farmaholic]

Large part of basis is rail freight. Annual increases in freight are 5-7%. If everything else remained equal (fob levels, handling margin, etc) basis would be $2/mt wider each year to get to the same price at port to pay the railway.

So when the basis is half, or less than half, of what it is now GrainCos or Railways are handling it for nothing? I don't think so....