Grain Market Update - Canola (June 2020)

The following graph shows the movement in ICE November 2020 Canola Futures price expressed in A$/tonne and the domestic canola price delivered Port Kembla. Also included is the 10 year average ICE November Futures price expressed in A$ and the 10 year average domestic price at Port Kembla.

The domestic price for canola has seen huge volatility since the beginning of the year, with prices peaking at $645/tonne, but declining significantly since then, with the price currently at A$592/tonne. The domestic price has mirrored the ICE Futures price trend, with the ICE November Futures price being A$506/tonne equivalent at present.

The resulting basis of A$86/tonne equivalent is A$31/tonne lower than the basis at the same time last year and A$59/t higher than the 10 year average basis for this time of year.

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

A PKE price of $592/tonne represents $554/tonne local depot with freight to port of $38/tonne. This should be above the budgeted Break Even Price for most clients.