Grain Market Update - Canola (April 2011)

The following graph shows the movement in the ICE Futures Canada November 2011 Canola Futures and the 2011/12 domestic canola price delivered port.

Since early 2011, the domestic price on a port basis has been quite volatile.  The rapid drop in the domestic price during mid March was a market reaction to the Japanese tsunami and reflected uncertainty in the global economy and the health of the Japanese economy. 

The ICE November 2011 Canola Futures has been more stable, averaging A$570/tonne equivalent from 1 January 2011 to date.

The basis for the period has been predominately positive.  Currently the domestic price is A$591/tonne and the ICE November 2011 Canola Futures price is A$563/tonne equivalent, resulting in a positive basis of A$28/tonne.