Demand for Australian canola oil keeps growing

Australian canola growers have been gratefully surprised by the demand experience of both domestic and international markets. This demand has been particularly high for canola oil, especially when it comes to crude oil.

Even though there is not a main particular reason, there is quite a few explanations for this heavy demand. First of all, there is a world shortage, driven by the not-positive harvest in Europe and Ukraine. Secondly and mainly explaining the demand in crude oil, there has been a substantial demand from China, apparently to use as a biofuel. Lastly, Australia has the advantage of getting non-GM canola oil, which makes it even more demanded (than, for example, Canada) and willing to pay a higher premium (Especially by EU).