(Resource News International) –– Improving canola crush margins are helping encourage domestic crusher demand in Western Canada, translating into better basis levels, according to market participants.
A canola trader said firm soyoil values were behind some of the gains in the crush margins, encouraging some crusher pricing in the futures markets.
Cash basis levels are also tightening, “as the crushers scramble to get canola up their driveways,” said a canola broker.
The canola board crush margins released by ICE Futures Canada have improved by $15 to $20 per tonne over the past month, with the margins against the May contract sitting at roughly $119 per tonne.
Increased domestic demand can be seen in the weekly crush data provided by the Canadian Oilseed Processors Association (COPA).
In the most recent report for the week ended Feb. 10, the weekly crush topped 100,000 metric tons for the first time this crop year.
