Canola Production Will Need to Ramp Up to Meet Demand

[MLamirandeRM]

Oil World is forecasting that Canada’s canola stockpiles will plunge 40% to 1.1 mmt, even with record production, as exports and processing reach record levels, up 6.9% and 5.7% respectively, for a total of 14.4 mmt. The analyst believes that Canadian canola production may have to rise as high as 15 mmt next year in order to satisfy prospective world demand. Increased Chinese imports due to reduced domestic production and the recent opening of four new crushing plants was largely attributed for the increased export volume.

Michelle Farms.com RM

[MLamirandeRM]

FYI - The Canadian Oilseed Processors Association reported the Canadian oilseed crush for the week ended November 30, 2011 at 13,171 mt for canola with cumulative crush to date for the 11/12 MY at 2,013,184 mt. This is higher than last year’s 2,013,184 mt as of November 30th. 25,399 mt of soybeans were crushed for a cumulative year to date total of 435,090 mt, lower than last year’s cumulative crush of 459,562mt.

[furrowtickler]

Seen this yesterday, good info. Might be very hard to repeat even last years production. Things are alot different now than last year this time. It was easy to ramp up canola acres with reasonable fert prices and stronger canola prices. Also alot of very productive land sat iddle ready to go. I feel acres flat to down slightly and production down. 13 mill tn might be a stretch.

[fjlip]

Might see a price premium in our future.
Acres will be down in this area from about 60% canola this year.

[Hopperbin]

Have to admit they will not get any higher in this traditional growing area either. So the acres need to come from last years too wet or non traditional acres.

[furrowtickler]

At this point non-traditional areas are dry and last years flooded out ares will balance out the swing acres. Plus fert up dramaticaly