Canada’s Canola Exports to Drop as Cooking Oil Kings Bet on Fuel
- Nation’s biggest grain shippers boosting crush capacity by 50%
- More canola to be directed to North America renewables market
Photographer: Andrew Harrer/ Bloomberg
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Exports from the world’s top canola shipper could drop by nearly half in coming years as Canada’s biggest processors bet more of the oilseed will be used in renewable fuel to power trucks and farm equipment.
Canada’s shippers plan to boost the nation’s canola crush capacity by 50% as companies seek to meet rising demand for the oilseed in North America’s burgeoning renewable fuel market. It’s a seismic shift that is poised to slash exports by as much as 4 million tons in the next two to three years as more crush capacity comes online, said Chuck Penner, the owner of LeftField Commodity Research in Winnipeg, Manitoba.