Canola Crush Margins Reach Record Levels Amid Market Volatility
Canola crush margins surpassed $350 per tonne in April, up from $120 last year. Analysts warn that growers are not benefiting from this increase amid rising fertilizer and fuel costs.
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In April, the Intercontinental Exchange reported canola crush margins exceeding $350 per tonne, a significant rise from $120 in the previous year. Despite these record margins, farmers are not receiving a fair share of profits, as rising costs for inputs like fertilizer and fuel continue to burden them.
Analysts express concern that if growers do not benefit from these margins, they may switch to cheaper crops, negatively impacting the canola industry. Market volatility poses risks for crushers, with potential shifts in margins occurring rapidly.
Strong global demand for canola products, driven by biofuel and animal protein sectors, indicates a robust market. The outlook for 2026-27 suggests above-average crush margins, but competition dynamics could limit price improvements for growers.
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