Rapeseed futures at Paris and ICE canola futures really took off last night. The nearby Paris contract closed E4.25 / tonne higher and ICE canola wasn’t far behind it.
Cash bids across SW Saskatchewan for canola followed futures higher, closing the day bid at C$532.71 for a January 21 lift. Using Europe as an end point Australian canola at current bids would work well at this price, in fact current bids show that the Australian product could be as much as AUD$15 cheaper than the Canadian alternative. Aussie canola basis continued to fall yesterday, now just +AUD$16.00 to ICE.
China’s increased feed demand as they rebuilt after the ASF continues to put upward pressure on oilseeds and meals worldwide.

Wheat futures in the US found support from spill over buying in the oilseeds and corn. Thailand walked away from Australian feed wheat in the latest tender but did pick up some feed barley from Australia. The barley sale comes hot on the heal of last week’s Australian sale to Saudi Arabia. Australian barley continues to beat out other exporters such as France, who are traditionally very big suppliers into the Middle East. Black Sea and EU barley continued to fill the slot that Australian barley would usually fill in the higher priced Chinese market. These alternative markets for Australian barley are good to win but it comes at a price as Australian barley needs to be able to compete with the geographical advantage of the alternative suppliers, which it can only do by being cheaper. But it is good to see China actually paying up to US$40 more for barley from alternative buyers, well done China, the world needed another lesson in how stupid tariffs are.