Australia: Canola prices surge above $800/ton as farmers take advantage of harvest

Canola prices have kicked hard in the past two months to currently sit at values of $815 a tonne delivered port. The rally, coming from prices of around $680/t at the end of August, defies both traditional harvest pressure on pricing and a lack of clear market fundamental to drive prices up to this extent. Market analysts said it meant Australian growers had been willing sellers off the header. "Farmers have used canola and chickpeas to generate cash flow and have been selling there, whereas they are storing more of their cereals," said Robinson Grain Trading general manager Adam Robinson. "The value pushing in excess of $800/t has certainly made it attractive." Market Check chief executive Nick Crundall said there had been some form of harvest pressure, but said it was being absorbed in the greater price rises on offer. "Internationally, we've been seeing prices rises around $A5/t a day of late, but perhaps only half of that is being passed on as our basis against Matif prices ...