Grain Market Update - Canola (November 2019)

The following graph shows the movement in ICE November 2019 Canola Futures price expressed in A$ and the domestic canola price delivered Port Kembla. Also included is the 10 year average ICE November Futures price expressed in A$ and the 10 year average domestic price at Port Kembla.

At present the ICE November Futures price is A$511/tonne equivalent and the domestic price is $650/tonne delivered port. The resulting basis of A$139/tonne equivalent is similar to the basis at the same time last year and A$108/t higher than the 10 year average basis for this time of year.The domestic canola price at present is a Decile 9.9 price, calculated on prices from 2009 to date. This is slightly greater than the same time last year.

A PKE price of $650/tonne represents $612/tonne local depot with freight to port of $38/tonne. This is likely to be above clients Break Even Price at drought adjusted yields.