Canada struggles to keep a balance between exporting and processing canola
Canada currently accounts for 23% of global canola production and 47% of global exports. This season’s crop will yield 18.98 million tons, 11% less than in 2023 but above the five-year average.
China remains one of Canada’s most important markets for canola. Although Canadian exports have generally declined over the past 4 years, China continues to buy, even though canola prices are comparable to soybean prices, analysts said. While trade friction surrounding Canadian canola exports to China continues to grow, analysts at Mercantile Consulting Venture believe that an outright ban on the oilseed is unlikely to result in a price advantage for the crop over others in the Chinese market.
As the Chinese market shrinks, the potential for Canadian canola is growing in Europe, especially for biodiesel production, it notes. Strengthening demand is expected to be aided by the European Commission’s temporary anti-dumping duties against Chinese biodiesel, which came into effect on August 16. Earlier, experts of Strategie Grains for the third time in a row reduced the forecast of rapeseed harvest in the European Union in 2024 due to unfavorable weather conditions by almost 14% to 17.27 million tons.
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