Why is Canola a different price in Alberta, Saskatchewan and Manitoba

[Rareearth]

Look behind the obvious.

Summer delivered Prairie cash bids are back over $19/bu (season highs) out in Alberta, middle $18s in Saskatchewan and between $18 to $19/bu in Manitoba (depending on location).

[Rareearth]

Viterra is mystery buyer in secretive Regina land deal... The Regina Leader Post is reporting that Viterra is the mystery buyer of 633 acres of city-owned land on the northern outskirts of Regina, according to sources familiar with the matter. The proposed land sale is priced at $4 million, about $2.3 million below the appraised value of the land. City council voted unanimously at a special meeting on Monday to approve an option for the buyer the acquire the land at that price, with one year to exercise it.

Mayor Sandra Masters said she didn’t want to reveal any additional information “that could potentially jeopardize” the deal. “Any competitor that caught wind of it could potentially insert themselves on a very minor scale, which could ruin the compilation of land needed for something of this magnitude to go forward,” she said during Monday’s meeting.

Reached for comment, a spokesman for Viterra did not answer any questions, blaming a faulty connection. He did not return a subsequent voicemail message or an email by publication.

The first and obvious guess here is that that Viterra may be the third party connected to a possible crush canola plant build for a renewable fuel project. I’m just speculating though.



This leads me to this question, primarily aimed at Competition Bureau,

- this is a quote from a afternoon newsletter i received

“Prairie cash bids are back over $19/bu (season highs) out in Alberta, middle $18s in Saskatchewan and between $18 to $19/bu in Manitoba (depending on location).”

- why the price difference between Alberta, Saskatchewan and Manitoba? In the past it was to offset the extra cost for freight to Vancouver.
About half of the Canola produced in western Canada is crushed in these large facilities, food oil and now bio diesel.
They are no longer exporting generic commodity canola seed they are crushing for specific customers - end users, high value oil, a lot of this stays in North America. My point is the price of canola should be the same or very similar between provinces. The gorillas ( large exporters viterra, Cargill, Richardson, etc) use this price discrepancy because they can.

[SASKFARMER]

Another scam used and farmers get took every day. Most is crushed in Sask

[jazz]

Viterra is mystery buyer in secretive Regina land deal....

An entire section of land for a canola crush biodiesl facility? Seems like overkill. Unless they are growing it too.

[bucket]

Would the FCL/True North renewables be involved in all of this?

[Livewire]

The more canola crushers the better!! I haul to ADM lloyd and it’s amazing to see the amount of canola they can swallow in a day.

[SASKFARMER]

Loop track?

Yes, Canola crush plants crush our canola seed, We all think it's about the oil the companies get from the crush but our meal has a big worth in China to feed the little piggies. High food value due to our growing conditions. They make billions off one little canola seed. Don't think when it was 9 two years ago they didn't make huge money.

[Old Cowzilla]

An entire section of land for a canola crush biodiesl facility? Seems like overkill. Unless they are growing it too.

How much land do you need for the loop system ? And yes somebody is growing crops inside the loop at G3 BLOOM.

[farmboy44]

Look behind the obvious.

Summer delivered Prairie cash bids are back over $19/bu (season highs) out in Alberta, middle $18s in Saskatchewan and between $18 to $19/bu in Manitoba (depending on location).

Does it cost you more to drive to Vancouver if you start in Calgary or in Regina

[Blaithin]

Need a quarter for a loop that fits 130-150 cars.

Could conceivably have a little yard and ship their own canola there. As in load a train of canola in AB and send it to Regina for offloading. Why export down to Washington when you can send to SK?

[redleaf]

Does it cost you more to drive to Vancouver if you start in Calgary or in Regina

Or Winnipeg ?

There, finished your question for you.

[Rareearth]

Ah, you are correct it costs more for fuel and takes more time from Regina, but

Why did they build the massive protein plant in manitoba ( where all the peas are grown) ?

Ill stop there, its interesting food for thought.

Manufactures charge the buyers cost + margin for finished goods (or what the market will bear, or cost formula based on competitive substitutes) and commodity sellers pay freight to the manufactures door. Figure out out who does what.

With world Class infrastructure crushers and protein, I'm glad they are built in Canada! Skippy cant have everything.