Tight canola supplies in southern Manitoba are leading to some very attractive basis levels in the region, as at least one crushing plant is actively looking to secure more supplies.
The Bunge canola crusher at Altona, Man. is currently offering basis opportunities of $5 under the November futures, and had been as tight as $2 under earlier this week. Similar single-digit basis opportunities are available from the southern Manitoba processor into January.
Nearby basis from the company’s other plants across the Prairies currently range from $35 to $48 under the futures.
“The crushers are really scrambling to get canola,” said a central Manitoba-based farmer and canola trader who had recently delivered to the Altona plant.
At $2 under, the farmer said that was close to the best basis he had ever received for canola.
While seasonal harvest pressure should conceivably weigh on prices, the farmer said supplies are on the tight side in the region with many poor yielding fields.
Prices “are starting to reflect that they’ll be needing to rail it in from Saskatchewan this year,” he added.
