CWB begins canola marketing

CWB has begun selling farmers’ canola, the first time in 63 years that a new crop has been added to its marketing mix.

Canola joins wheat, durum and barley as products marketed through the CWB’s farmer pools.

Initial payments for canola are expected to be announced early next month.

CWB’s first Pool Return Outlook for canola, issued today, is $640 per tonne (basis in-store Vancouver or Thunder Bay).

“Farmers have been telling us they want CWB to run canola pools to help manage their price risk and provide them with reliable returns through a system they can trust,” said CWB president Ian White in a news release.

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Farmer sign-up is now open for the new CWB canola pool.

White first mentioned the CWB’s interest in marketing canola in February when he and agriculture minister Gerry Ritz went on a trade mission to China.

At the time, White said there was an opportunity to use the CWB’s office in Beijing to market a range of crops to the China National Cereals, Oils and Foodstuffs Corp. Today, he said many of the grain buyers around the world that have long-term relationships with the CWB also buy canola.

White said the farmer benefits of wheat pooling apply as well to canola.

“Farmers retain all the profits generated from their grain sales, instead of simply taking a flat price at the elevator. It also means they can spend more time on their crops instead of chasing the commodity futures markets.”

Farmers can deliver the canola they contract with CWB to 42 delivery points across Western Canada. The current locations are mostly independent smaller companies, but the CWB expects to add more delivery locations.

White said farmers can participate in the risk management benefits of a canola pool while retaining the flexibility of dealing with whatever handling company they choose.

They can sign first and choose their grain handler later, which means they can shop their grain around to get the best possible deal on handling and elevation fees.”

The current delivery points for the CWB canola program are:

Manitoba

Delmar Commodities: Jordan, Sperling, Gladstone, Somerset

Linear Grain: Carman

Mission Terminal: Alexander

Parrish & Heimbecker: Dutton, Glossop, Transcona

Saskatchewan

Fillmore Seeds: Fillmore, Creelman, Osage, Glenavon

Great Sandhills Terminal: Leader

Mission Terminal: Neville

North West Terminal: Unity

Parrish & Heimbecker: Hamlin, Langbank, Moose Jaw, Moosomin, Quill Lake, Saskatoon, Tisdale, Watrous, Yorkton