Grain Market Update - Canola (September 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. More recently the domestic price has strengthened again, resulting from an improved basis.

Currently the ICE Futures price is A$501/tonne equivalent and the domestic price delivered port is $553/tonne, reflecting a positive basis of A$52/tonne. The basis at this time in 2016 was A$47/tonne.

The domestic canola price at present is a Decile 8 price, calculated on prices from 2009 to date.

A port price of $553/tonne represents $515/tonne local depot with freight to port of $38/tonne. The average budgeted Break Even Price for clients in 2017 is $395/tonne, while that for the top 20% is $325/tonne, at Decile 5 yields.