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Old crop premium disappearing?

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  • farming101
    Senior Member
    • Mar 2011
    • 3955
    #1

    Old crop premium disappearing?

    <a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/July-Nov%20spread_zpsn1gckaqk.jpg" border="0" alt=" photo July-Nov spread_zpsn1gckaqk.jpg"/></a>
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    • bucket
      Senior Member
      • Jan 2008
      • 17039
      #2
      That has to be good for new crop prospects?

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        • farming101
          Senior Member
          • Mar 2011
          • 3955
          #3
          Probably the biggest thing the chart is saying is that the speculators are cashing in on the recent price increase.

          What could happen is the price drop might lead to more farmer canola pricing which would widen basis some more.

            Comment

            • bucket
              Senior Member
              • Jan 2008
              • 17039
              #4
              Or canola not getting planted when you link it to spring weather forecasts.

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