Grain Market Update - Canola (June 2016)

The following graph shows the movement in ICE November 2016 Canola Futures and the domestic canola price delivered port. Since April 2016 the ICE Canola Futures price has rallied quite strongly. The domestic price has also strengthened, but the basis has narrowed over this period of time, ranging from A$23/tonne down to A$1/tonne.

The strengthening of prices has presented strong selling opportunities for growers with many securing sales at Decile 8 to 9 prices.

Currently the ICE Futures price is A$536/t equivalent and the domestic price delivered port is $548/t, reflecting a positive basis of A$12/tonne.

The domestic canola price at present is slightly below the Decile 7 price, calculated on prices from 2009 to date.