SSC Security Services Corp Ordinary Shares V.INP

Canola testing 1-year low and soon could test 2-year low

[WheresMeGold]

Canola prices continue to drop and the trend looks lower. Some paranoid farmers will tell you that this year’s harvest is horrible and an evil cabal of companies and the government is keeping canola prices artificially low. This requires one to ignore the fact that vegetable oils are very fungible and often one oil can replace another when the price is right. And right now canola’s big brother soybean is having a tremendous bumper crop in the US, providing huge supply and lower prices for at least this year and next.

Those who signed up with Input’s marketing stream got a great price for their canola compared to what has been available for the last few months. And those participating in Input’s mortgage stream are protected from declining prices for 5 years. Input provides value to farmers, although the paranoid farmers that I mentioned above will never see the value as they believe almost every company or institution is out to screw them. But the majority of Western Canadian farmers will eventually see the value even if many may choose not to participate.