How is the board crush margin for Canola (Rapeseed oil) calculated? Should it be calculated off Soybeans or Corn? I read that the correlation of Canola to Corn is more appropriate... Wanted to hear some thoughts
Isn't that "normal" for this time of year with harvest completed and a desire to whittle down the supply?
I don't think that correlation is correct. Canola (rapeseed in Europe) is an oilseed and competes with other oilseeds like soybeans, palm, peanuts and to a lesser extent cottonseed and corn (the latter two aren't grown primarily for their oil, but they do produce some). All of these veg oils also compete - in some parts of the world and in some food uses - with good old-fashioned animal fats such as lard and tallow, from hogs and cattle, respectively. I'm not aware of a board crush for canola/rapeseed. There is a canola contract on the Winnipeg exchange (now part of ICE) but no corresponding meal or oil contract. https://www.theice.com/publicdocs/ICE_Canola_Brochure.pdf