Frequently Asked Questions
“ Why doesn't my Cargill $9.98 target for canola trigger when other nearby elevators are offering $10.15 for canola off the combine?”
“ At its simplest, a Grain Pricing Order is a target price with two components: futures price and local Cargill basis. ”
Your sales rep will understands the particulars and is the best person to speak to about your specific situation. However, maybe we can address some of the factors that contribute to whether or not a Grain Pricing Order (GPO) would trigger. At its simplest, a GPO is a target price with two components: futures price and local Cargill basis. While the futures price for a particular futures month may reach a certain level, you need to subtract the local Cargill basis for the delivery period – that will determine the futures value required to establish the net price of the GPO you requested. All competitors use the same futures market for canola, but at any given time, Cargill or one of its competitors could have a different basis level and therefore a different flat price contract level. It is also important for a producer to make sure the offers are similar when comparing basis. For example, some locations will use a delivered bid instead of a picked-up (FOB) bid. FOD bids are generally a little bit lower at face value, but the grower doesn’t have to pay additional trucking costs. Cargill’s canola crush plant in Clavet, Saskatchewan offers both delivered and FOB bids. You may want to check which one is committed on a GPO.