Direct answer: Canola basis is the difference between the ICE canola futures price (usually the front-month contract) and the cash bid at your elevator or crusher.
It is typically quoted as cash minus futures.
A wider (more negative) basis means the local bid is farther below the futures price.
Basis moves with local supply, demand, freight, and storage even when the futures price is unchanged.
The two pieces of a cash bid
A Prairie canola cash bid has two parts:
Futures — the ICE canola (RS) front-month close, quoted in Canadian dollars per tonne.
Basis — the adjustment the buyer applies for location, quality, timing, and local conditions.
The Daily Board prints the ICE close.
It does not print your elevator bid.
The gap between them is basis.
What moves basis
Basis can change even on a quiet futures day:
Harvest pressure or tight local supplies.
Freight rates and rail capacity.
Crusher demand and oil/meal values.
Storage availability and the cost of carrying inventory.
Currency moves that affect the competitiveness of Canadian canola.
A strong futures rally can still leave a wide basis if elevators are full or freight is scarce.
The reverse is also true.
What The Daily Board shows (and does not show)
The Board gives the ICE close and the reason it moved.
The so-what line ties that close to the farm context (diesel, fertilizer, basis pressure, hedges).
It is not a cash bid sheet.
For the technical plan and specific basis observations, see the Klarenbach Grain Report.
Frequently asked questions
What is canola basis?
The gap between the ICE canola futures price and your local cash bid, usually cash minus futures.
Why can basis change when futures do not?
Because basis reflects local supply, demand, freight, and storage.
Those can move independently of the Chicago or ICE futures close.
Does The Daily Board print my elevator bid?
No.
It prints the ICE futures close.
Your cash bid is futures plus or minus basis.
Is a wider basis always bad?
A wider (more negative) basis lowers the cash price relative to futures.
It is not always permanent; basis can tighten if local demand improves or freight eases.