WINNIPEG – Canola growers’ associations believe the new canola futures contract, which moves the pricing point from Vancouver to Saskatoon, will lower the price that farmers receive.
With the help of a Calgary law firm, they launched an 11th-hour attempt in the Federal Court of Canada to stop the change. The matter was to be heard in Vancouver Sept. 25, but details were unavailable at press time.
“We show (in affidavits) that there could be irreparable harm done to the price we get for our product, so that’s primarily why we’re doing it,” said Bruce Dalgarno, president of the Manitoba association.
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Revoke bylaw
The growers asked the court to direct the Canadian Grain Commission to stay or revoke the bylaw of the Winnipeg Commodity Exchange that changes the canola contract. Federal court officials said in cases like these, the judge hearing the request can grant a 10-day interim injunction. This would likely mean the exchange could not start trading the contract until the case was resolved. The contract was to be launched Sept. 28.
An official said the grain commission monitors the exchange, but will intervene only when activities are deemed prejudicial to the public interest.
Some good, some bad
The growers say while they like certain aspects of the new contract, they think moving the par pricing point would be against the public interest because it will lower prices.
The growers want the industry to study the impact of the changes further. But an exchange spokesperson said the matter has been designed and studied by experts, who say the net effect of the contract will be good for the whole industry.
“It’s not just a whim,” said Sandra Craven. “It’s been researched extensively, so we really feel confident that this is the right way that we’re going.”
Craven said producer groups were consulted about the contract.
