Canada’s canola crush to hit record and continue growing

Canada’s canola crush is expected to reach a record 12.7 mln tons in 2025/26. USDA raised its previous estimate by 300 thsd tons following strong processing volumes at Canadian facilities toward the end of the season.

According to Statistics Canada, canola crushing reached a new monthly record of nearly 1.2 mln tons in June. Strong volumes were also expected in July following the doubling of capacity at the Yorkton facility in Saskatchewan. USDA noted that upgrades, expansions and the completion of new facilities over the past three years have allowed Canada’s crushing industry to outperform previous expectations.

Another record could be set in 2026/27, with USDA raising its canola crush forecast by 500 thsd tons to 13.7 mln tons. Growth will be supported by expanded processing capacity, ample canola supplies and strong domestic and international demand for canola oil.

Strong crushing margins remain an important incentive. October canola crush margin contracts on ICE approached $200/t, around 70% higher than a year earlier. One of the key demand drivers is biodiesel and other biomass-based diesel production, which is consuming increasing volumes of Canadian canola oil.

Against the backdrop of expanding crush, USDA also expects record canola oil exports in both 2025/26 and 2026/27. The US will remain the main destination, with substantial volumes used in food manufacturing and biofuel production. Canola oil-based biofuels are also increasingly consumed domestically in Canada and exported to the US and EU.

Tags: canola, Canada, rapeseed