Crush Margin

[farming101]

Canola has been left behind.
Crush margin for the Jan 2020 contract climbed to 121.27 yesterday.
Nearby bean oil chart is at 2 year highs

[AlbertaFarmer5]

Is there no way to take advantage of that arbitrage? Not enough competition for it to close on its own? With that much profit to be made, wouldn't foreign crushers be willing to bring in Canadian canola, or is it not that easy to swap from other oilseeds to canola? Or is the whole seed export market still backed up from the big crop and railroad strike?

[Crestliner]

Is there no way to take advantage of that arbitrage? Not enough competition for it to close on its own? With that much profit to be made, wouldn't foreign crushers be willing to bring in Canadian canola, or is it not that easy to swap from other oilseeds to canola? Or is the whole seed export market still backed up from the big crop and railroad strike?

AF5....if you think that Is a good margin...you are only seeing part of it....that’s the margin from the simple formula they let you see. Add the crush premium for IP varieties and then add further refining and small packaging...the net will push over $500 per MT....most of our oil crush goes to US.

Wanna get in the action....buy/build a crush plant.

[Hopalong]

Crushers have treated us well taking our blended damp and dry canola, willing to let them make a profit.
Finding a change in recent years that we are able to work with graincos to mutual advantage.

[TASFarms]

AF5....if you think that Is a good margin...you are only seeing part of it....that’s the margin from the simple formula they let you see. Add the crush premium for IP varieties and then add further refining and small packaging...the net will push over $500 per MT....most of our oil crush goes to US.

Wanna get in the action....buy/build a crush plant.

I’ll build one. Send me your money so I can get started lol

[farming101]

Bean oil up over 2% this morning. Palm 34 month highs.
Canola should be up $5 tomorrow. Just throw the meal in the bush

[6V53]

I’ll build one. Send me your money so I can get started lol

[Sodbuster]

With bean soybean oil at almost 35 cents along with our 75 cent dollar our canola price should be over $500 a tonne, will have to wait till spring to see if this market will correct itself.

[AlbertaFarmer5]

With bean soybean oil at almost 35 cents along with our 75 cent dollar our canola price should be over $500 a tonne, will have to wait till spring to see if this market will correct itself.

There is about a 50 cent premium from now till spring locally, and even more into new crop. How much of the current weakness in canola vs. other oilseeds and the end products, is as result of all of the tough, wet, green canola time bombs being moved at any price by producers not used to, or set up for managing it? It eventually has to come to an end?

[Sodbuster]

You hit the nail on the head regarding tough and green canola, hoping by spring most of this will be out of the system.