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CWB announces 2012-13 initial payments for canola

CWB will pay farmers delivering canola into its Harvest Pool a $475-per-tonne initial payment for No. 1 and $462 per tonne for canola graded No. 2, the company announced Sept. 4.

The initial payments, which are guaranteed by the federal government, represent a portion of expected final returns. The current pool return outlook for No. 1 canola is $640 per tonne.

The Harvest Pool sign-up deadline is October 31, 2012, with a marketing period that runs from harvest to June 30, 2013. Pool volume may be capped depending on farmer demand and logistical capacity, CWB says in a release. Farmer participation in CWB pools is based on a first-come, first-served system.

In its market commentary, CWB says the canola supply-and-demand balance is relatively tight and will remain strained through 2012-13 due to strong domestic and off-shore demand. “The Canadian canola crop is estimated at 14.7 million tonnes, somewhat less than expectations and, given anticipated demand, there is very little chance that ending stocks will increase year on year,” it said.

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