CNS Canada –– Declining canola crush margins are finally starting to be felt in the Canadian processing sector.
The weekly crush pace took a hit, in the latest report from the Canadian Oilseed Processors Association.
Domestic crushers processed only 126,917 tonnes of canola during the week ended Wednesday, according to COPA data.
That figure represents only 69 per cent of domestic crush capacity, and was the smallest weekly crush, aside from the Christmas week, since November.
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 $81 above the most active July contract.
Current levels have lost about $10 per tonne over the past month and compare with crush margins at the same point a year ago of about $188 per tonne above the futures.