Grain Market Update - Canola (June 2015)

The following graph shows the movement in ICE November 2015 Canola Futures and the domestic canola price delivered port.

Having been relatively stable during the first part of this year, canola prices have strengthened significantly of late.  Whilst the basis has remained stable, both the futures and domestic price in Australian dollar terms have risen by approximately $40/tonne since late May.

Given the current domestic price is just above the Decile 7 level illustrated, it would seem that there is less downside in the canola price than there is in wheat prices.

Currently the ICE Futures price is A$517/t equivalent and the domestic price delivered port is $550/t, reflecting a positive basis of A$33/tonne.