Canada’s canola crush pace is running well above average, with demand from domestic processors more than offsetting any shortfalls on the export front, according to the latest grain handling data.
The Canadian Grain Commission reported total domestic usage of canola during the first 12 weeks of the 2019-20 crop year at 2.463 million tonnes. That compares with the five-year average of 1.888 million tonnes and the year-ago level of 1.924 million tonnes.
A continuation of the current pace would see total domestic usage for the 2019-20 marketing year come in at 10.673 million tonnes, which would be 1 million above the latest Agriculture Canada forecast and well above the 9.754 million tonnes in domestic use in 2018-19.
Attractive crush margins should be encouraging the crusher demand, with nearby levels at C$100 or more above the futures, according to ICE Futures Canada data. That compares with margins closer to $50/tonne at the same time in 2018.
Canada’s ongoing trade dispute with China has limited sales to that normally strong buyer. However, total canola exports-to-date of 2.015 million tonnes are actually about 35,000 tonnes ahead of what moved the previous year. The exports compare with the five-year average for week 12 of the crop year of 2.101 million tonnes.
Source : Syngenta