Grain Market Update - Canola (April 2017)

The following graph shows the movement in ICE November 2017 Canola Futures and the domestic canola price delivered port.

Since early January there has been a steady decline in both the futures and domestic prices with both falling approximately A$25/tonne since early January

Currently the ICE Futures price is A$480/t equivalent and the domestic price delivered port is $503/t, reflecting a positive basis of A$23/tonne.

The domestic canola price at present is a Decile 4 price, calculated on prices from 2009 to date.

A port price of $503/tonne represents $465/tonne local depot with freight to port of $38/tonne. The average budgeted Break Even Price for clients in 2016 was $422/tonne while that for the top 20% was $353/tonne.