For the first time ever, the CWB has announced initial payments for canola contracted to the CWB Harvest Pool.
The initial payment for No. 1 Canada canola is $475 per tonne and the initial payment for No. 2 Canada canola is $462 per tonne.
The initials are equivalent to roughly 74 percent of the CWB’s pool return outlooks.
PROs for canola were listed last week at $640 per tonne for No. 1 and $627 per tonne for No. 2.
Initial payments are effective Sept.1 for canola deliveries into the 2012-13 canola pool.
The deadline to commit canola to the CWB harvest pool is Oct. 31, 2012. The marketing period for the pool runs from harvest until June 30, 2013.
In its marketing commentary, CWB said canola stocks are relatively tight and will remain strained in 2012-13 due partly to strong domestic and offshore demand.
Ending stocks for 2011-12 are estimated at approximately 600,000 tonnes.
Despite a Canadian crop estimated at 14.7 million tonnes, there is very little chance that ending stocks will increase, CWB said.
Crop production problems in the United States have boosted world soybean prices and canola values are following suit.
South America’s soybean production is estimated at record levels but if growers there experience adverse weather world oilseed prices could climb higher, the marketing agency added.
A complete listing of initial payments for all grades of crops marketed by CWB can be viewed at www.cwb.ca/payments.