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.

How is foreign exchange handled differently for different crops?

At Cargill, we take the foreign exchange risk for you. Remember, all grain is traded in U.S. dollars.

How can I price and sell barley after the New Year?

This year, there's no shortage in supply and feedlots are buying hand to mouth. However, there may be some opportunities to sell if bad weather hits.

Will there be any upside to Hard Red Spring Wheat?

The short answer is no. The long answer is that there are plenty of options out there for world wheat buyers as we move toward our summer months.

Does Cargill use an accurate open interest indicator?

We follow the open interest data as reported by ICE Futures Canada. It shows changes in open interest, which helps us analyze market influences.

How do I know what the local basis levels is?

Finding local basis is easier than ever – visit www.cargillag.ca for futures pricing and local basis for our major commodities.

How do you determine the price of grain?

Basis and Futures determine the price of grain. Basis accounts for 10 – 20 per cent of the price, while futures accounts for the other 80 – 90.

What can cause volatility in grain markets?

There are three major factors that influence grain prices in general: weather in production areas, the global economy and government policies.

How do world markets affect the price of durum?

Canada largely influences world values for durum. However, when North Africa has a large crop, there is less global demand and a lower price for us.

Can I book a contract for a certain grade and protein level of wheat?

There may be the odd occasion when we do want to lock in a specific grade/protein to match up with a specific sale.

Do farmers with large volumes of grain get preferred access?

Farms of all sizes will have the same access to delivery opportunities. Communicate with your local elevator about what they’re looking for.

Can I deliver all my production off the combine?

In some years you could potentially do that, but it depends on a number of factors: your price expectations, storage capacity and cash flow.

How can I beat the market?

Trying to beat the market makes grain marketing even more challenging. Start by establishing your production costs and revenue goals.

What is Cargill's base grade for wheat?

We use No. 2 grade with a protein content of 13.0 per cent because we believe it creates more opportunity for quality premiums than discounts.

Where can I sell wheat with high sprout damage?

If the Falling Number is below 250, your best alternative is going to be the local feed market on either side of the border.

How does a Grain Pricing Order work?

At its simplest, a Grain Pricing Order is a target price with two components: futures price and local Cargill basis.