However, when MATIF prices rose substantially, local Australian prices did not shift in tandem, and the Australian Canola’s basis discount blew out to deep discounts. As a result, losses were incurred on the international futures short positions which were sold, which were not counterbalanced by similar sized price gains on the physical production positions held within Australia
However, when MATIF prices rose substantially, local Australian prices did not shift in tandem, and the Australian Canola’s basis discount blew out to deep discounts. As a result, losses were incurred on the international futures short positions which were sold, which were not counterbalanced by similar sized price gains on the physical production positions held within Australia