Grain Market Update - Canola (June 2014)

The following graph shows the movement in WCE November 2014 Canola Futures and the domestic canola price delivered port. Canola prices have been relatively flat for the period, although there was a small lift in price during March/April. However this was short lived and like wheat, the canola price has declined in the lead up to the Northern Hemisphere harvest.

In comparison to historical prices, canola has not been as strong as wheat. At its peak, the domestic price reached $26/t above the Decile 8 domestic price, but on current pricing the domestic price is $20/t below the Decile 8 domestic price.

Currently the WCE Futures price is A$453/t equivalent and the domestic price delivered port is $492/t, reflecting a negative basis of A$39/tonne.