The following graph shows the movement in ICE November 2017 Canola Futures and the domestic canola price delivered port.
Since early January, there has been a steady decline in both the futures and domestic prices. More recently the domestic price has strengthened again, resulting from an improved basis.
Currently the ICE Futures price is A$483/tonne equivalent and the domestic price delivered port is $524/tonne, reflecting a positive basis of A$41/tonne. The basis at this time in 2016 was A$12/tonne.
The domestic canola price at present is a Decile 5 price, calculated on prices from 2009 to date. There have been two opportunities to lock in close to Decile 7 prices during the last six months.
A port price of $524/tonne represents $486/tonne local depot with freight to port of $38/tonne. The average budgeted Break Even Price for clients in 2017 is $395/tonne, while that for the top 20% is $325/tonne.