Grain Market Update - Canola (April 2013)

The following graph shows the movement in the WCE November 2013 Canola Futures and the domestic canola price delivered port. Since the end of January, the futures price has fallen A$9/t equivalent and the domestic price has fallen A$22/t.

Currently the WCE Futures price is A$524/t equivalent and the domestic price delivered port is A$515/t, reflecting a negative basis of a$9/t.  Like wheat, canola prices may be volatile in response to world crop forecasts.  Some analysts are suggesting that should wheat continue to fall, canola prices may slide to sub A$500/t at harvest.