Winnipeg, Feb. 17 (CNS Canada) – Canola crush margins continue their downward slide, falling to their lowest levels in 10 months over the past week.
Recent losses in many vegetable oil markets behind the declines.
As of Feb. 17, the Canola Board Crush Margin calculated by ICE Futures Canada was at about C$86 above the March contract, which compares with levels a month ago of roughly $126. 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.
The nearby crush margin was last below $90 in May 2016,.
Reports of increasing output sent Malaysian palm oil prices to their lowest levels in three months this week, while Chicago Board of Trade soyoil hit its weakest levels in four months.
However, canola futures did not follow the product values lower to the same extent, with underlying concerns over tightening supplies and supportive chart signals keeping the ICE Canada contracts range-bound overall.