Marketing

In addition to a few local markets, canola can be transported to Harvest States in Duluth, Minnesota (telephone: 651-306-6590) or to ADM in Windsor, Ontario (telephone: 1-800-265-3619 - arrangements for delivery must be made in advance).   The following documentation is needed for delivery into Canada :
  •  A notarized certificate of origin (copies may be obtained by fax or mail from ADM).
  •  Form 7525V - Shippers Export Declaration ( U.S. forms available from an elevator, and some U.S. post offices and libraries).
  •  Canada Custom Invoice (copies may be obtained by fax of mail from ADM).

Prices are based on either the Chicago Mercantile Exchange (U.S.) or Winnipeg Commodity Exchange (Canada).  Since canola is an oilseed, the soybean market heavily influences its price.   Prices per metric ton (2,204 U.S. lbs) are quoted on the basis of Grade 1 canola, and discounts are assessed for low quality factors (Table 3).

Table.  Example of quality discounts, ADM Agri-Industries.

Item
Discount
Dockage
unload weight, less % dockage
Moisture: tough damp shrink
10.0 to 12.5% max: $12/ton
over 12.5%: $20/ton
down to 10.0%: clean weight less
unload %: 10.0%
100: 10.0%
Glucosinolates
3+ to 4 max: $25/ton
4+ to 5 max: $100/ton
subject to rejection at crushers (rejection
per visual color readings on litmus paper)
Grade:
No.1
No.2
No.3
no discount
$20/ton
$75/ton
Other grade factors: heated brown seed; distinctly green seed

Profitability of canola vs. Other Michigan field Crops
Canola profitability is comparable to other Michigan crops (Table 4) based on current prices and costs of production.   Agricultural Economics Report No. 496 from the MSU Department of Agricultural Economics was used to estimate farm budgets for typical Michigan crops.   Estimates are based on projections from Ontario and MSU research/demonstration trials done by Michigan State University and in Ontario. 

Table 4. Expense-profit (per acre) comparisons of canola vs. other Michigan field crops.*

Input
Spring canola
Winter canola
Wheat Corn Navy bean
Soybean
Seed
Nitrogen
Phosphate
Potassium
Herbicides
Insecticides
15.00
27.50
16.00
18.00
16.00
0.00
15.00
27.50
16.00
18.00
11.00
0.00
15.00
22.00
16.00
18.00
1.00
0.00
23.75
19.60
6.00
13.20
14.70
2.20
20.00
6.60
0.00
2.40
14.70
0.00
10.00
3.20
0.00
4.80
17.90
0.00
Selected variables
costs (SVC) ($)
92.50 87.00
72.00
79.45 43.70 35.90
Yield/unit
2,000 lb
2,500 lb
65 bu
110 bu
12 CWT
40 bu
Price/unit** 0.12
0.12
3.02
2.00
20.00
5.00
Gross revenue ($)
240.00
300.00
196.30
220.00
240.00
200.00
Return above SVC ($)
147.50
212.50
124.30
140.55
196.30
164.20
*Production costs reflect cost example for agricultural inputs and are subject to change. Yield estimates for canola are based on MSU research and extension tests. 
While additional costs may be incurred in producing these crops, these figures are used as a basis for comparing different crops.  Estimates in all cases are for costs expected to produce higher yields.
**Check current prices.