Canola 100 winner, Merle Klassen, accepting his award at the Farm Forum Event in Calgary. Wednesday, December 5.

Facing new limits on available funding, Canada’s canola value chain organization plans to refocus its work on its “core strengths” and collaborate with other players.

The Canola Council of Canada on Wednesday announced a revised work plan, coming out of a “priorities review” undertaken after one of Canada’s biggest grain companies called a halt to annual funding for several oilseed industry groups.

Richardson International announced in January it would withdraw yearly commitments worth over $1 million combined to the Canola Council, Soy Canada and the Flax Council of Canada — the lion’s share of which had gone to the canola body.

The Winnipeg-based Canola Council’s resources “are now more tightly focused on the industry’s current priorities and the CCC programs most valued by members,” the council said in a release Wednesday.

From the perspective of the Canadian canola grower, that tightened focus will mean “less emphasis” on extension-style agronomy work by council staff, such as “individual field walks and on-farm support.”

Rather, the council said, it will put more focus on “engaging commercial agronomy in effective delivery and amplification of knowledge and best management practices to growers,” to be co-ordinated through a new CCC “sustainable supply committee.”

The council’s own agronomy specialists will still have “geographic responsibilities,” but are also expected to increase their focus on their “individual areas of specialization” such as clubroot, blackleg, stand establishment, weed management, storage management and others.

Staff will still provide “credible, evidence‐based data and knowledge to support all areas of CCC activity” from production issues though to “supporting market access objectives,” the council said.

Some council programming will also be moved to “other parts of the value chain,’ the CCC said. For instance, it plans to reduce its role in administering the Canola Performance Trials and transfer that responsibility to other stakeholders.

Other activities, such as the Ultimate Canola Challenge and sentinel site program, will be wrapped up, the council said.

The council said its team will also be “less involved” in provincial disease and pest surveying.

Market access and government advocacy remain “top priorities of the full canola value chain,” the council said, but CCC members “can also expect to see more advocacy on cross‐commodity issues” as the council offers “leadership and additional support” to the Canada Grains Council and Canadian Agri‐Food Trade Alliance.

Consumer‐oriented canola promotions will be “discontinued” in large markets where canola is “firmly established,” the council said, and its marketing work will shift to “maintenance and nurturing of the Canadian canola brand.”

In “new and emerging” markets, the council said it will work with the Canadian Canola Growers Association to develop and deliver a program for canola brand promotion and awareness, particularly in countries such as South Korea, Vietnam and Chile, where “free trade agreements are creating new opportunities.”

To fund its work, the council said, it plans to decouple its budget from a levy linked to production, processing and handling and instead tie the budget directly to “priorities and programs.”

The funding model will “provide more predictability for annual contributions,” the council said. Half the budget funding would come from producer groups, the other 50 per cent from the industry.

Thus, the council said, its core budget for 2019 will be $5.2 million, down from $8.7 million in 2017.

Core funders of the council include the three Prairie provinces’ checkoff-funded canola grower groups, the Canadian Canola Growers Association and (through the CCGA) the Ontario Canola Growers and B.C. Grain Producers Association.

Other funding sources include a voluntary processor levy through the Canadian Oilseed Processors Association, contributions from life science companies such as Bayer, BASF, Corteva, Syngenta and Nutrien and a voluntary levy on export companies such as Viterra, G3, Bunge, Cargill, Parrish and Heimbecker and Providence Grain.

“We’re very pleased that all segments of the value chain are fully behind the direction we are taking,” council president Jim Everson said in a release. “It’s a direction that will enable us to continue our record of leadership, while enhancing our partnerships.”

“With (council members’) input, we determined that the Keep it Coming 2025 strategic plan should remain our industry’s roadmap, and we will reset our priority activities to better respond to today’s needs,” council chair David Dzisiak said in the same release.

The Keep it Coming 2025 plan is based on achieving 52 bushels per acre to meet global market demand of 26 million tonnes by 2025. — Glacier FarmMedia Network

Canola News |

via Grainews https://www.grainews.ca
December 11, 2018 at 08:47AM

The ICE Futures canola platform finished the day stronger, supported by a weak Canadian dollar. Trading was choppy in the last few minutes before market close.

The Canadian dollar fell below the 75 U.S. cents mark Monday, as tensions continue to rise over the arrest of Huawei Chief Financial Officer Meng Wanzhou last week. China has warned Canada it could face severe consequences for the arrest.

Canola contracts found support from tightening spreads as participants are starting to roll their January positions forward into March. Spreads accounted for most of trade during the day.

Chicago Board of Trade (CBOT) soybean and meal contracts were weaker, while soyoil contracts were stronger.

The United States Department of Agriculture (USDA) releases its monthly supply/demand report tomorrow, and pre-report positioning took place during the day in North American grain and oilseed markets.

About 32,757 canola contracts traded, which compares with Friday when 29,759 contracts changed hands. Spreading accounted for 26,924 of the contracts traded.

The USDA announced a 125,000 tonne sale of soybeans to unknown destinations for the 2018/19 crop year this morning.

Bloomberg reported that China will soon announce it will be resuming U.S. soybean purchases. Volume could be in the five to eight million tonne range, but it is still being decided as to whether or not they will lift 25 per cent tariff.

China imported 5.38 million tonnes of soybeans in November, according to the USDA. This is down 38 per cent from last year; it is the smallest monthly volume in two years and the smallest November volume since 2012. Year-to-date imports are down by four per cent.
CBOT corn prices finished the day in the red.

The USDA announced a flash sale of 1,645,920 tonnes of corn to Mexico this morning. This is the fourth-largest daily sale of corn on record since 1977.
Wheat futures in the U.S. finished the day weaker.
Winter wheat acres in Kansas are expected to be less than last year, due to a colder and wetter than average fall. This could see Kansas having the smallest wheat acreage number in more than a century.
Export prices of Russian milling wheat rose by US$3 per tonne last week to US$228 per tonne, following another sale to Egypt.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $1.61 at US$51.00 per barrel.

In the afternoon, the Canadian dollar was trading around US74.74 cents, up from 75.19 cents the previous trading day. The U.S. dollar was C$1.3379.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 19 487.60s +2.10 +0.43%

Canola Mar 19 493.40s +1.10 +0.22%

Canola May 19 500.80s +0.80 +0.16%

Canola Jul 19 507.10s +1.30 +0.26%

Canola Nov 19 498.10s +0.10 +0.02%

 

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.

 

Chicago

Soybeans Jan 19 909-6s -7-0 -0.76%

Soybeans Mar 19 922-6s -6-2 -0.67%

Soybeans May 19 935-4s -6-2 -0.66%

Soybeans Jul 19 947-2s -6-0 -0.63%

Soybeans Aug 19 951-2s -5-6 -0.60%

 

Soybean Meal Dec 18 307.9s -1.2 -0.39%

Soybean Meal Jan 19 310.0s -1.2 -0.39%

Soybean Meal Mar 19 313.9s -0.8 -0.25%

 

Soybean Oil Dec 18 28.52s +0.02 +0.07%

Soybean Oil Jan 19 28.76s +0.02 +0.07%

Soybean Oil Mar 19 29.02s +0.02 +0.07%

 

Corn Dec 18 374-2s +0-2 +0.07%

Corn Mar 19 384-0s -1-4 -0.39%

Corn May 19 391-2s -1-4 -0.38%

Corn Jul 19 397-6s -1-4 -0.38%

Corn Sep 19 398-4s -0-6 -0.19%

 

Oats Dec 18 282-4s +1-0 +0.36%

Oats Mar 19 289-0s +1-0 +0.35%

Oats May 19 291-2s +1-6 +0.60%

Oats Jul 19 286-6s +3-4 +1.24%

Oats Sep 19 273-6s +3-2 +1.20%

 

Wheat Dec 18 514-6s -4-6 -0.91%

Wheat Mar 19 525-2s -6-0 -1.13%

Wheat May 19 531-4s -4-4 -0.84%

Wheat Jul 19 537-2s -2-6 -0.51%

Wheat Sep 19 545-6s -2-4 -0.46%

 

Minneapolis

Spring Wheat Dec 18 580-0s -5-6 -0.98%

Spring Wheat Mar 19 575-2s -6-2 -1.07%

Spring Wheat May 19 580-2s -5-4 -0.94%

Spring Wheat Jul 19 586-0s -5-0 -0.85%

Spring Wheat Sep 19 593-2s -4-6 -0.79%

 

Kansas City

Hard Red Wheat Dec 18 482-6s -1-6 -0.36%

Hard Red Wheat Mar 19 510-2s -1-6 -0.34%

Hard Red Wheat May 19 521-2s -1-4 -0.29%

Hard Red Wheat Jul 19 530-6s -1-2 -0.23%

Hard Red Wheat Sep 19 544-2s -0-4 -0.09%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 18 117.575s -0.325 -0.28%

Live Cattle Feb 19 121.200s -0.325 -0.27%

Live Cattle Apr 19 123.600s -0.025 -0.02%

 

Feeder Cattle Jan 19 145.025s +0.650 +0.45%

Feeder Cattle Mar 19 142.750s +0.875 +0.62%

Feeder Cattle Apr 19 143.275s +0.750 +0.53%

 

Lean Hogs Dec 18 54.725s +0.475 +0.88%

Lean Hogs Feb 19 66.825s -1.050 -1.55%

Lean Hogs Apr 19 72.075s -0.250 -0.35%

 

By Phil Franz-Warkentin, Commodity News Service Canada

Winnipeg, Dec. 4 (CNS Canada) – ICE Futures canola contracts were stronger on Tuesday, taking some direction from the gains in Chicago Board of Trade soybeans and soyoil.

Speculative short covering and weakness in the Canadian dollar contributed to the firmer tone in canola, according to a broker.

However, losses in the outside equity markets and reduced optimism over the tentative trade truce between the United States and China put some pressure on values, with activity described as choppy and volatile.

The advances also encouraged some farmer selling, as producers look to empty bins and generate cash flow ahead of the New Year.

Statistics Canada releases its latest production estimates on Thursday, and pre-report positioning was a feature.

About 37,334 canola contracts traded, which compares with Monday when 24,661 contracts changed hands. Spreading accounted for 22,810 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were up on Tuesday, seeing some follow-through buying interest after Monday’s gains.

Good demand from the domestic crush sector was supportive, with the October crush hitting a record of 182.95 million bushels.

Ideas that the latest truce between the United States and China would result in more export business remained supportive for beans as well.

However, the promises have yet to result in anything tangible which kept some caution in the market.

Rising South American production prospects also kept a lid on soybeans.

CORN futures were stronger on the day, as early profit-taking proved short-lived and the market managed to follow soybeans higher.

Usage from the U.S. ethanol sector was up in October compared to the previous month, but below the year-ago level, according to a report.

Ongoing concerns over the African swine fever in China and the possibility of reduced feed demand in the country put some pressure on values.

WHEAT futures were narrowly mixed, seeing some consolidation after recent gains.

Speculative profit-taking was a feature, with no real fresh news to provide direction.

While U.S. wheat is thought to be looking more competitively priced on the world market, the country continues to miss out on export business.