WINNIPEG,(MarketsFarm) – Canada’s canola crush is running well ahead of the year ago pace, according to the latest data from Statistics Canada.
Four months into the 2019/20 marketing year, which began Aug. 1, more than 3.3 million tonnes of canola have been crushed, according to the report released Dec. 19. That’s a jump of 8.5 per cent when compared to this time the previous marketing year.
However, the November canola crush at 829,303 tonnes was down by almost six per cent from the previous month.
The amount of canola oil produced rose 8.4 percent from year to year, with production having reached in excess of 1.4 million tonnes by the end of November. Canola meal production was up nearly 8.8 percent to more than 1.8 million tonnes.
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A major factor behind the increased crush has been the dramatic jump in crush margins this fall. Margins in November were approximately double the values of those a year ago, according to data from the Intercontinental Exchange (ICE). During the month, margins ranged from the high C$90’s to the low C$110’s.
That domestic usage helped reduce the overall impact of China’s ban on canola imports through Richardson International and Viterra. Agriculture and Agri-Food Canada’s (AAFC) expected approximately 10.2 million tonnes of canola will be crushed during 2019/20. That would be up by about 500,000 tonnes on the year.
Meanwhile, the soybean crush volumes were significantly lower when compared year to year.
The Canadian soybean crush in November came in at 156,626 tonnes, about 7,900 tonnes more than in October. However, crush volumes at 573,953 tonnes so far this marketing year are down 17.6 per cent when compared to this same time in 2018/19.
To date, 105,883 tonnes of soyoil has been produced, which is 18.9 per cent lower than at this point last year. Soymeal was down as well, at 443,200 tonnes for a drop of 17.5 per cent from 2018/19.
