CNS Canada — Canada’s weekly canola crush dropped sharply over the week ended Wednesday, but some of the decline is likely tied to an overstatement of what was processed the previous week.
The weekly canola crush came in at only 110,909 tonnes, which compares with 180,078 tonnes the previous week, according to data from the Canadian Oilseed Processors Association.
That level marks the lowest weekly crush in nearly a year, with the weekly crush capacity utilization level coming in at only 53.7 per cent — well below the 81.9 per cent year-to-date level.
“The week before was maybe overstated, and this week is understated,” said a canola broker, noting that the word in the trade was that there were likely some reporting errors made the previous week that were corrected in the latest data.
The two weeks combined average out, he added.
Crush margins have come down considerably over the past month, with the Canadian canola board margin reported by ICE Futures Canada losing over $20 per tonne.
Looking at the July canola contract, the margins were at $74 per tonne above the futures as of Friday, down by $13 on the week, and comparing with levels of $94 per tonne above the futures a month earlier.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.