CNS Canada — Canola crush margins dropped by more than $30 per tonne over the past two weeks, which may be putting a damper on end-user demand.
As of Thursday, the Canola Board Crush Margins calculated by ICE Futures Canada were at about $100 above the March contract, which compares with levels only two weeks ago of roughly $130.
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.
Read Also
Alberta Crop Report: Higher-than-average yields expected
Cooler temperatures and rainfall in Alberta supported projected higher-than-normal crop yields, according to the province’s crop report released on Aug. 1, 2025.
The nearby crush margin has generally averaged $110-$120 above the futures for the past eight months, only dipping below $100 once during that period.
The declines in crush margins are tied to a combination of strengthening futures and losses in the product values.
The March canola futures contract gained roughly $20 per tonne over the past two weeks, but has stabilized in recent sessions.
Chicago Board of Trade (CBOT) soyoil futures, meanwhile, lost 1.5 cents/lb. over that same period.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
