Colza.... AKA Canola

[AlbertaFarmer5]

And why would they purposefully grow a crop which requires much higher inputs and sells for a discount to beans? Or is it a seasonal thing where this would be the winter crop inbetween?

[ajl]

Canola also grows in Argentina without TUA's. Imagine that.

[Klause]

And why would they purposefully grow a crop which requires much higher inputs and sells for a discount to beans? Or is it a seasonal thing where this would be the winter crop inbetween?

Sells for a premium to beans there. $460 to $500 USD per tonne (cheaper still than buying from Canada and hauling it down there)

High oil content 50-52%

And yes it's grown in the winter season while beans corn and cotton get grown in summer.

[Bowerpower]

Crop production is changing. Canada is becoming a minnow in a ocean of sharks. Everyone is producing more more more.
Last resort supplier : Canada. And we should be.... we produce a very expensive bushel.

[WiltonRanch]

I am ignorant to world demand for oilseeds but it seems the world uses up all the soy farms can produce. Cereals are a different story. For the big gains in canola and soy production the price of canola doesn’t seem to drop off yet. Is demand increasing such that any new players coming on stream will bomb the market? Is more of this demand industrial or feed?

[bgmb]

I not very worried about Argentina out competing us. I am sure their economy will be wiped out by hyperinflation again soon.

[bgmb]

Also Klause, You forgot Argentina is famous for export taxes. Currently they have a 30% export tax on beans. Can't imagine that is helping their competitiveness

[Klause]

I not very worried about Argentina out competing us. I am sure their economy will be wiped out by hyperinflation again soon.

Wow.

Argentina did very well until US meddling in the mid 20th century...

With a waning US influence and hundreds of billions in Chinese investment... It's worth keeping an eye on.


China is seeing Canada as a hostile investment region... While Argentina Chile Brazil and other Mercosur countries are welcoming of the foreign capital.

Soybean Meal Exports by Country in 1000 MT

Rank Country Exports (1000 MT)
1 Argentina 28,650.00
2 Brazil 13,600.00
3 United States 9,253.00
4 India 3,950.00
5 Paraguay 2,325.00
6 Bolivia 1,290.00
7 China 1,000.00
8 EU-27 700.00
9 Canada 200.00
10 Norway 155.00

In wheat Russia bumped us to 3rd largest exporter and Argentina moved from 15th to 7th in 4 years.




Unless we start watching learning to compete between the FSU and Latin America we will be done in commodity production

[farming101]

I could be wrong, but Argentina's increased wheat exports blew out their carryover. Export amounts going forward could be volatile depending on annual production results.

[blackpowder]

Well we cant change the Rockies, or the Shield, or the muskeg and sea ice.
Right of ways for extra rail lines doesnt change the distance.
COPs will have to change. And N to S rail.