EXTRACT: AgFarm broking manager Brad Knight said conventional [i.e. non-GM] canola was attracting a premium because "it speaks all languages and can go anywhere."
"Non-GM has more flexibility because it can go into any domestic market, it can go into containers or it can go overseas."
Mr Knight said there were only a couple of traders bidding for GM canola, while there were a dozen bidding for conventional grains.
NOTE: This price differential is not new. Previous headlines have included:
Major grain traders snub GM canola
www.gmwatch.org/latest-listing/1-news-items/13196
Price hit on GM growers
http://gmwatch.org/component/content/article/13788
Non-GM canola fetches price premium over GM
http://www.abc.net.au/rural/news/content/201105/s3227954.htm
Monsanto fire sale on GM canola
http://www.gmwatch.org/latest-listing/1-news-items/13875
Monsanto props up weak GM crop price
http://www.gmwatch.org/index.php?option=com_content&view=article&id=13871
The economics of growing GM canola clearly do not add up, but Monsanto has apparently been underwriting the price of the GM crop to prop it up, and giving away bags of its Roundup Ready canola seeds for free to the minority of Australian farmers willing to grow it.
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GM canola takes a cut
Lyndal Reading
Weekly Times (Australia), October 11 2012
http://www.weeklytimesnow.com.au/article/2012/10/11/544822_grain-and-hay.html
FARMERS selling genetically modified canola are facing discounts of $14-$30 a tonne for their grain.
The price disparity between GM and conventional canola is up to $30 a tonne at some sites.
Cargill is quoting $14-15 a tonne difference, while GrainCorp is quoting $30 a tonne difference at Lillimur in the West Wimmera for 2012-13 grain.
GrainCorp's daily prices show the top price for conventional canola is $576 a tonne delivered to Geelong, while the top price for GM canola is $535 a tonne delivered to St James, north of Benalla.
Cargill spokesman Peter McBride said the price premium at Tatyoon North in the Western District was $526 a tonne for conventional canola in comparison to $511 a tonne for GM canola.
He said the price delivered to the Footscray crush plant was $556 a tonne for conventional and $542 a tonne for GM.
Mr McBride said overall canola prices were very good.
"We're seeing some fairly strong prices for canola and that's partly due to the Canadian StatsCan figures last week which is 13.4 million tonnes for canola," Mr McBride said.
"That's a million tonnes lower than what the market was expecting."
Mr McBride said the premium for conventional canola was due to the demand from the European Union.
AgFarm broking manager Brad Knight said conventional canola was attracting a premium because "it speaks all languages and can go anywhere."
"Initial orders at the moment for December, January and February are destined for the European Union where they want non-GM," Mr Knight said.
"Non-GM has more flexibility because it can go into any domestic market, it can go into containers or it can go overseas."
Mr Knight said there were only a couple of traders bidding for GM canola, while there were a dozen bidding for conventional grains.
However, Mr Knight said the canola market was extremely volatile.
"Going into harvest last year the spread (between GM and non-GM) was $10 to $15 (a tonne) and then it spread out to $30 (a tonne)," he said.
Mr Knight said prices had jumped $30 a tonne in the past week due to the figures out of Canada, but were still below what it was a few weeks ago.
"Pricing is exceptionally good at the moment – historically it's very high," Mr Knight said.