The following graph shows the movement in ICE November 2019 Canola Futures price expressed in A$ and the domestic canola price delivered Port Kembla. Also included is the 10 year average ICE November Futures price expressed in A$ and the 10 year average domestic price at Port Kembla.
The canola price has fluctuated considerably since the beginning of the year, with the current domestic price being similar to the starting price for 2019, while the ICE 2019 Canola Futures price has fallen A$20/tonne equivalent since January.
At present the ICE November Futures price is A$506/tonne equivalent and the domestic price is $563/tonne delivered port. The resulting basis of A$57/tonne equivalent is A$66/tonne higher than the basis at the same time last year, which was negative A$9/tonne.
The domestic canola price at present is a Decile 9 price, calculated on prices from 2009 to date. This compares to a Decile 5 price at the same time last year.
A PKE price of $563/tonne represents $525/tonne local depot with freight to port of $38/tonne. This should be well above the average budgeted Break Even Price for clients.