Grain Market Update - Canola (November 2013)

The following graph shows the movement in WCE November 2013 Canola Futures and the domestic canola price delivered port. During early June and again during late August, WCE Canola prices spiked at around A$582 and A$569/tonne equivalent, providing good selling opportunities which were taken up by many clients through physical or SWAP contracts.

Pre-harvest speculation suggested that there may be a lift in prices as harvest commenced. Given the recent above average Canadian harvest, the fact that basis is $16/tonne above that of this time last year, plus significant canola has been harvested to date, it would appear, that the market may have already factored in local conditions and continue to move sideways.

Currently the WCE Futures price is A$519/t equivalent and the domestic price delivered port is $515/t, reflecting a negative basis of A$4/tonne.