Will Canadian canola oil increase exports to US renewable diesel facilities?
In conjunction with the market signal triggered by the U.S. Inflation Reduction Act, and state-level initiatives like those in place in California and Oregon, the announcement signifies a potential increase in the exports of Canadian canola oil to U.S. renewable diesel facilities.
How much canola is produced in 2022/23?
Final production estimates from Statistics Canada put MY 2022/23 canola production at 18.17 million MT. This is a production increase of 32 percent year-over-year, on improved yields due to moister conditions.
Where does canola oil come from?
U.S. canola production remains limited outside of the northern plains (mainly North Dakota) by climate and soil factors. The bulk of canola oil feedstock used in U.S. renewable diesel production is likely to come from Canada.
Will canola oil increase in 2022/23?
In MY 2022/23, exports of canola oil are forecast to increase 13 percent on expected increased crush levels, despite lower year-over-year oil extraction rates caused by low canola oil content. The processing capacity of soybeans remains limited.