Canola Movement

[Partners]

Got a call from Bunge today..They are picking up our March canola on Feb. 5th..
Is there a shortage..AH..NO...was the answer..
Yet Viterra can't move there Dec. contracts?

[farmaholic]

That was an interesting response Partners. I realize giving it to them early keeps them from bidding for new needed canola. The selfish part of me would say take it, at least it's out of my yard for spoilage reasons and spring break-up/thaw/road bans.

What was the reason for denying them access?

[farmaholic]

Sorry, I thought the "ah - no" was your response....
So you will let them have it?...

[Partners]

Yes we are..$$$ 1 month early helps the cause..

[Partners]

there answer was No shortage..Yet we were told they were only pricing in March, as Feb Jan were both full a week ago..

So we get the March price one month early..

[farmaholic]

Is it priced out already? Do you have to accept a later cheaper futures month (inverse)? Basis or futures first? Deferred delivery?

[farmaholic]

Which month did you price against?

[Partners]

Priced it a week ago..$9.80 picked up..

Its going to Harrowby..

[farmaholic]

A week ago using which futures month? Did they steal some of the inverse from you? ie: make you price against a further out month in an inverted market. Or did they "make it up to you" with a narrower basis?

Maybe I'll quit asking questions now, thanks Partners.

[Partners]

They were using March..It was the highest price they had..except for May..don't like to haul in May...Price was 10.21 minus trucking to Harrowby..