Canada Markets

Statistics Canada reported Canada's canola crush growing for a second month to 885,331 metric tons (mt) in October, the largest monthly crush seen in 18 months. This is above the 857,316 mt needed this month in order to stay on the steady pace needed to reach the current AAFC forecast of 10 million metric tons (mmt), and is up 1.1% from the October 2021 volume, but is 1.2% below the three-year average for this month.

Over the first three months of the crop year, the cumulative crush totals 2.312 mmt, which is down .2% from the same period in 2021-22. This is the lowest first-quarter crush in four years although by a narrow margin.

The reported oil content for the month remains perplexing, reported at 41.4%, down slightly from the previous month. During the first three months, the oil content is reported to average 41.5%, which remains down from the 2021-22 average of 41.8% and the five-year average of 42.9%. As of Nov. 7, the Canadian Grain Commission's Preliminary quality data for Canadian canola report shows a Western Canada mean oil content of 42.7% for all grades while the Eastern Canada mean is 45%. It would appear that old-crop deliveries may continue to weigh on the oil yield early in 2022-23.

Today's report shows 163,779 mt of soybeans crushed in October in eastern Canada. This is the highest volume in six months and higher than the 160,000 mt needed this month in order to stay on track to reach the current 1.9 mmt AAFC forecast.

Over two months, 303,791 mt has been crushed, up 0.9% from the same period in 201-22 while 0.2% lower than the five-year average. The crush margin is reported at 18.6% during the first two months of 2022-23, which compares to the final 2021-22 yield of 18.7% and the five-year average of 18.6%.

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Cliff Jamieson can be reached at cliff.jamieson@dtn.com

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