SSC SEC Services Corp. (SECUF)

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Canola Prices on the Rise

Canola prices have been increasing since late May due to weather and the strong Canadian Dollar. November
futures of canola exceeded $500 for the first time this year on Friday, June 19. The November futures price chart
is shown below.



Frost across Western Canada had a major impact on canola seeding in late May and early June. Reports from
farmers note many were forced to re-seed their crops due to the frost. We feel that the frost is a benefit for Input
as it has led to higher canola futures prices. The re-seeding may have also led some farmers to seek alternative
sources of financing such as Input. Weather continues to be a concern for many farmers and reports indicate
crop conditions are below last year at this time.

The weak Canadian dollar has also helped demand for canola, which is benefiting canola prices. These factors
have led to canola exceeding the $500 mark for the November futures. We had previously estimated a $475 per
tonne price of canola for this year’s harvest.

We feel the improving price will be a benefit to Input in the short term and weather conditions may help with
their deployment.

credit to; Daniel Iwata, BA, Dip. Fin. Mgmt.
Equity Research Associate
http://www.researchfrc.com/new/