Canola crush margins seen improving

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Published: February 24, 2010

(Resource News International) –– Improving canola crush margins are helping encourage domestic crusher demand in Western Canada, translating into better basis levels, according to market participants.

A canola trader said firm soyoil values were behind some of the gains in the crush margins, encouraging some crusher pricing in the futures markets.

Cash basis levels are also tightening, “as the crushers scramble to get canola up their driveways,” said a canola broker.

The canola board crush margins released by ICE Futures Canada have improved by $15 to $20 per tonne over the past month, with the margins against the May contract sitting at roughly $119 per tonne.

Increased domestic demand can be seen in the weekly crush data provided by the Canadian Oilseed Processors Association (COPA).

In the most recent report for the week ended Feb. 10, the weekly crush topped 100,000 metric tons for the first time this crop year.

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.

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