Biofuel demand keeps Canadian canola crush near record levels

Canada’s canola processing industry maintained strong operating rates in May despite the usual seasonal slowdown. According to Statistics Canada, canola crush totaled 1.04 million tonnes, down just 1.5% from April, a much smaller decline than is typically seen at this time of year.

Analysts attribute the resilience to robust demand for canola oil. Domestic consumption remains strong, while U.S. biofuel producers continue to increase their use of vegetable oils as feedstock. Higher global vegetable oil prices have also improved crushing margins, allowing processors to sustain elevated production levels.

Canadian crushing plants have posted record results so far in 2026. During January–May, they processed 5.2 million tonnes of canola, up 11% from the same period last year, reflecting consistently high capacity utilization despite seasonal fluctuations.

The continued expansion of the North American biofuel industry and steady demand for canola oil remain the main drivers supporting Canada’s processing sector. If these trends persist, the country is expected to maintain historically high canola crushing volumes in the coming months.