Well, with Harvest Underway, it never fails that we swing directly into some planning for next year.
We have an opportunity to Contract some Specialty Canola Oil Acres for next year, an option that offers a premium price over other varieties in the market.
The focus is on low, or zero Transfat oils that have an increasing presence in the commercial food marketplace.
There are Varieties available under both the Roundup Ready and Liberty Link Production Systems.
First, choose a variety
V12-1 – The price: $67.57/ acre Includes 5#/acre of seed, Tech, and 2 applications of WeatherMax at 0.33 Litres/acre
InVigor 156H – The price: $70.85/ acre Includes 5#/acre of seed, Tech, and One application of Liberty at 1.35 Litres/acre.
Second: You have a choice between Market Premium OR: Prime Basis for each of your delivery periods.
You are limited to “splitting” the crop up into three delivery periods, subject to a Minimum of 55 acres per delivery period. (All prices become FOB Farm)
Market Premium per MT:
- Oct-Nov 2013 $50
- Dec-Jan 13/14 $60
- Feb-Mar 2014 $70
- Apr-May 2014 $90
- Jun-Jul 2014 $80
- August 2014 $100
Prime (Positive) Basis for RM 259 per MT:
- Oct $14.50
- Nov $17.50
- Dec $20.50
- Jan $24.50
- Feb $28.50
- Mar $32.50
- Apr $43.50
- May $46.50
- Jun $36.50
- Jul $40.50
- Aug $49.50
Other Incentives include Volume discounts starting at $10/bag for 20 bags up to $50/bag for 500 bags… (However, we only have 100 bags alloted for the retail right now)Also, Sign by Nov 30th, 2012 (Or while supplies last) and get an extra $10/Tonne premium on ALL production, regardless if you have chosen the Market Premium or the Prime Basis Options.
Third: Consider potential production overages or shortfalls
Cargill gets first right to purchase FLEX Tonnage (Yields over 30 bpa) at the perscribed Market Premium, OR growers can elect to market their FLEX Tonnage as commodity Canola.
Risk Free Hedge: 10 bushels per acre up to 479 acres
15 bpa from 480 to 2000 acres. These yields are presented to the grower as “Free of Contract risk” in the event of production shortfalls, and will apply to the earliest of the pre-determined delivery periods.
I think that’s the highlights…
Please give this your consideration, as supplies are limited.