How would one calculate the crush margin for Canola (Rapeseed) - would it be priced off soy or corn? Thanks for the feedback
https://www.theice.com/marketdata/reports/ReportCenter.shtml#report/2 " The Canola Board Crush Margin is comprised of an oil and meal contribution and a seed cost. It is calculated by subtracting the ICE Futures Canada canola futures price from the sum of the weighted value of the per tonne Chicago Board of Trade futures price for soybean oil and soybean meal. The calculation is based on a 40% oil contribution and 60% meal contribution per tonne of canola seed crushed. The margin calculation is currency adjusted using the Bank of Canada noon rate and is published in both Canadian and U.S. dollars. The margin calculation is a measure of the trend in core processing returns at approximate industry yields. Actual canola crushing margins are affected by numerous factors including individual processing plant yields, actual oil content of the seed, and the pricing basis for oil, meal and seed. Crush Margin Calculation Canola Board Crush Margin (Can $/tonne) = (BO * 22.0462 * Noon Rate * 0.40) + (SM * 1.1023 * Noon Rate * 0.60 * 0.75) - ICE Futures Canada Canola seed futures In the above calculation: BO = CBOT soybean oil futures settlement price in US dollars per hundredweight (or cents per pound), 22.0462 converts soybean oil to US dollars per metric tonne, and 0.40 reflects a 40% oil contribution. SM = CBOT soybean meal futures settlement price in US dollars per short ton, 1.1023 converts soybean meal to US dollars per metric tonne, 0.60 reflects a 60% meal contribution, and 0.75 is a price adjustment factor to account for canola meal containing approximately 75% of the protein in soybean meal. "