jhurkot
Active VIP Member
what he was saying was crushers are running pretty much full capacity and sitting on a good supply, they are estimating something like 11mmt still on farm in western Canada, line companies aren’t moving much to export and are dealing most of their purchases back to the crushers, possibly leaving a couple million ton carry out! Which is adequate to keep futures in check longer term. Short term, sooner than later these FCC loans need to be paid and all this canola that guys are sitting on with fingers crossed starts coming to town….. crushers sitting full…… basis widens!
Election years looming so expect the USDA bullch!t machine to keep the supply/demand numbers in the status quo to keep food inflation from accelerating anymore!
$14 canola doesn’t pay the bills anymore around here that’s for sure and with another drought looming for the spring it’s a bit to to be very enthusiastic unfortunatel!
A couple weeks ago peas were $13.50 and canola was $14.50. Never seen those 2 trade that close in price before.