Canola crush margins improve

Reading Time: < 1 minute

Published: September 25, 2015

,

(Photo courtesy Canola Council of Canada)

CNS Canada –– Canola crush margins have shown some improvement over the past week, despite rising futures prices, as strength in product values and a weakening Canadian dollar should be boosting the profitability of the domestic crush sector.

Crush margins provide an indication of the profitability of the product values relative to the seed cost when processing canola, with exchange rates also factoring in to the equation.

As of Friday, the Canola Board Crush Margin calculated by ICE Futures Canada was at about $53 above the November contract, which compares with levels closer to $38 a week earlier.

Read Also

Photo: Getty Images Plus

Alberta crop conditions improve: report

Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.

During that same period, the November canola contract increased by over $10 per tonne, which would normally cut into crush margins.

However, vegetable oil markets climbed sharply over the week, while the Canadian dollar lost two-thirds of a cent relative to its U.S. counterpart.

While the improving margins should help keep cash bids relatively firm, the margins are still well off the levels seen at the same time a year ago.

Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

About the author

Phil Franz-Warkentin

Phil Franz-Warkentin

Editor - Daily News

Phil Franz-Warkentin grew up on an acreage in southern Manitoba and has reported on agriculture for over 20 years. Based in Winnipeg, his writing has appeared in publications across Canada and internationally. Phil is a trusted voice on the Prairie radio waves providing daily futures market updates. In his spare time, Phil enjoys playing music and making art.

explore

Stories from our other publications