Statistics Canada reported the June canola crush at 733,698 metric tons, the lowest volume reported in three months, only slightly below the volume crushed in the same month in 2018 and 1.1% higher than the three-year average for this month.
Year to date, after 11 months of activity, 8.441 million metric tons (mmt) of seed has been crushed, up just 0.1% from the same period in 2017-18 while the industry continues to operate at or near capacity.
AAFC's crush target is 9.250 mmt, which suggests that 810,000 metric tons (mt) needs to be crushed in July to achieve this volume. In 2017-18, 838,000 mt was crushed in July, while the three-year average is close to 792,000 mt.
An approximation for the Canadian Canola Board Margin Index, a proxy for the returns generated crushing canola, as charted by ProphetX, points to a mean index of $82.53/mt for the month of June, up from an average of $79.21/mt calculated for the month of May. This compares to the mean index of $49.59/mt in June 2018.
Over the first 11 months of this crop year, the oil content of the seed is calculated at 43.5%, down from the 44.7% final average for 2017-18 and the three-year average of 44% based on Statistics Canada reporting.
Cliff Jamieson can be reached at firstname.lastname@example.org
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