Canola basis has now stretched to almost A$140/t for Australian canola over spot Winnipeg futures prices. That is the cash price saying good luck buying your paper canola at CA$422/t, but for physical we are actually not selling for less than A$565/t. The benefit being there is substantially more oil in Australian canola than Winnipeg futures contracts.
It is reflecting problems Canada are having getting their crop to market logistically. Crop handling systems are only built to accomodate average crops, but the world needs above average crops these days.
Infrastructure, infrastructure, infrastructure ... not enough being spent. A food crisis could come because of crumbling road and rail just as easily as underproduction.
