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Canola's Future Is in the Fuel Tank: 1 in 3 Acres Now Fuel

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  • wheatking16
    Senior Member
    • Apr 2010
    • 580

    Canola's Future Is in the Fuel Tank: 1 in 3 Acres Now Fuel

    Plus John Deere caves on right-to-repair in an FTC deal, and why Brazil's 13% interest rates could throw U.S. corn a lifeline this fall.

    The Daily Kernel is published.

    [url]https://www.dailykernel.klarenbach.ca/p/canola-s-future-is-in-the-fuel-tank-1-in-3-acres-now-fuel[/url]

    One in three canola acres now feeds the biofuel machine, John Deere just blinked in a years-long right-to-repair showdown, and Brazil's borrowing costs are climbing high enough to matter to your fall corn price.

    Canola used to be about the crush and the cooking oil. Now it's about diesel. A new look at where our seed actually goes shows just how tightly the Prairie's money crop is now hitched to the biofuel wagon — and that's mostly good news for the farm gate.

    What happened. According to Brittany Wood, senior trade and transportation policy manager at the Canadian Canola Growers Association, an estimated one in three acres of Canadian-grown canola now ends up in the biofuels market — whether that's here at home, in the U.S., or the EU. The estimate pulls together StatsCan oilseed export data, biofuel feedstock usage, and historical canola-in-fuel numbers.

    Why it matters. Domestic demand is exploding. Canadian biofuel consumption has jumped nearly 60% since 2021 as new renewable diesel and crush capacity comes online — and the industry's big players now openly admit canola's future is tied to renewable diesel and sustainable aviation fuel, not just the grocery-store oil aisle.
  • FarmJunkie
    Senior Member
    • Feb 2018
    • 927

    #2
    Add to that the shit yields on the way maybe the price will go up more to offset that

    Comment

    • shtferbrains
      Senior Member
      • Jun 2017
      • 5287

      #3
      The crushers are taking about $100 ac in new crush margin due mostly to sustainable aviation fuel. Mostly to California?
      Canola is the most favorable product due to Canadian farmers carbon friendly direct seeding.
      The crushers are leveraging western Canadian farming practices into bull margins.

      Don't recall a situation where so much new competition came into the market and the margin doubled?
      Normally new buyers have to outbid current long term relationships?
      But all this crush capacity is largely expansions of the few remaining players.

      Comment

      • fcr
        Senior Member
        • Feb 2021
        • 581

        #4
        Guess RFK Jr, negativity towards canola oil isnt affecting demand, just another american ploy to lower the price.

        Comment

        • goalieguy847
          Senior Member
          • Jun 2017
          • 685

          #5
          If this biodiesel plant in sherwood park starts running full time ( and uses canola oil as feed stock) it would pull in every avail bushel from calgary north.

          Comment

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