Canola markets

[LWeber]

889-949

i see what you did - the range CAN be +/- $60

sorry

[farming101]

i see what you did - the range CAN be +/- $60

sorry

Kinda joking. NOBODY expects to see 829 for a bit. But having said that volatility can really mess a guy up in a hurry

O and I welcome any and all call outs. It's a good way to double and triple check

[TOM4CWB]

I’ve always agreed with your stance on this issue, here’s my sarcastic response.
Why would you want farmers to know that between domestic crush and export sales on the books more is needed than will be produced this year… that would tell us to hold for much better prices and interrupt their supply. It happened last year and cost us millions.

As for Tom’s response about buy back costs, it never really costs the crusher or middle man, it’s always passed down to the farmer. Who do you think pays demurrage fees, I’ll tell you it sure isn’t the grain companies.

jwab,

If you look at history, 2002 was a tough year on Domestic Canola Crushers with historic losses on crush margins.

Since sales margins oil and meal are based;hedged off Soybean futures... this drought could well be as bad for Domestic Canola crushers as it is bad for western Canadian Canola farmers.

Farmer Canola sales hedged and on the books... at $650-750/t are calling $250/t margin calls on the crushers if they couldn't do back to back purchase/sales when Canola farmers presell.

The domestic crusher needs drought insurance as much as farmers! In 2002 some line companies had drought insurance I heard.
Cheers

[helmsdale]

Latest batch of runs at 12Z are brutal.

10 days of heat, and this for total precipitation...

[GDR]

I'm not sure how the canola market is even functioning right now. Who in their right mind would be selling or speculating? Bad areas are pretty well pooched, good areas are a lot closer to being cooked every day that goes by and the really good areas aren't out of the woods yet. There is a point where rain wont help anymore and I think for canola that day is likely within this week.

[furrowtickler]

I'm not sure how the canola market is even functioning right now. Who in their right mind would be selling or speculating? Bad areas are pretty well pooched, good areas are a lot closer to being cooked every day that goes by and the really good areas aren't out of the woods yet. There is a point where rain wont help anymore and I think for canola that day is likely within this week.

Yup agree

[makar]

And the reps think i am beyond stupid when i say i never forward contract.

[jazz]

And the reps think i am beyond stupid when i say i never forward contract.

I said 2 months ago the FOMO was intense this yr.

Cancelling a canola contract might be less expensive than losing land or tell your banker you can't make the pmts.

[woodland]

Makar you’re not alone in those thoughts……….

[Livewire]

Makar you’re not alone in those thoughts……….

In effect it’s selling something that you don’t have and maybe should be illegal. And those doing it this year may be about to find out why in a big way.