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Sep 17, 2022 | 06:11 1 Follow the money

https://www.producer.com/markets/canola-crush-margins-reach-staggering-levels/ Reply With Quote
Sep 17, 2022 | 09:14 2
Quote Originally Posted by GOODRUM View Post
Follow the money

https://www.producer.com/markets/canola-crush-margins-reach-staggering-levels/
Thanks for posting.

His crush index hit $325 per tonne yesterday, representing a gross margin of $7.37 per bushel.

That margin indicates that prices could be almost back to their highs and crushers would still be profitable.

As I suggested in another thread, this really looks like short term supply (even if just on paper) exceeding demand. Everyone was gun shy to forward sell anything after last years drought and buyout debacle, and a dry start to this growing season. So pricing pressure which would otherwise have been spread out over the crop year has been compressed into the harvest glut. Everyone who needs to sell for cashflow or storage had no choice but to sell into the declining market this summer and fall. Regardless of profitability, the system has finite capacity, so The market had to find a price that would convince sellers to hang on and ration those supplies throughout the year. While the sellers keep panicking that the bottom is falling out adding more fuel to the fire. Reply With Quote
Sep 17, 2022 | 11:06 3 Time to bin it , and turn the tap off
Glad to see they are making money , but with our expenses skyrocketing and yields lower than expectations we need to get paid more too Reply With Quote

  • Sep 17, 2022 | 13:22 4 Well if you think its bad now, wait until the other crush plants get built. No exporter that also has crush facilities will be motivated to export for $30 ton they with contract, store, and crush as opportunities present themselves.

    Any exporters that dont have crush facilities will supply the crushers vs export for the same margins that are easier, safer.

    Farmers need export, and sales reporting to offset at a minimum the shit show that is going to happen. Hope im wrong Reply With Quote
    Sep 17, 2022 | 19:46 5 It was mentioned to have a domestic sales report as well, farm groups couldn't see the logic.

    But then again they haven't quite figured out why an export sales report is required. Reply With Quote
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