Old crop premium disappearing?

[farming101]

<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>

[bucket]

That has to be good for new crop prospects?

[farming101]

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.

[bucket]

Or canola not getting planted when you link it to spring weather forecasts.