Recent strong canola crush margins may have a positive impact on producers, says a provincial crop analyst.
While companies don’t release their actual crush margin, it can be estimated from canola, meal and oil futures markets, said Neil Blue.
“The current calculated margin is over $100/tonne, and this compares to about $40/tonne last August,” said Blue, adding that’s the highest in two years.
“Strong crush margin alone does not imply higher canola prices near term. However, it should encourage continued good demand from canola crushers. That strong demand is necessary to support the price offered to producers by chipping away at the supply of canola.”