Drought takes a big bite out of canola exports from Canada

Published 2021년 12월 16일

Tridge summary

Canadian canola exports have seen a significant decrease, with a 50% drop in the first three months of the 2021-22 campaign due to the smallest crop in 14 years. The United States Department of Agriculture (USDA) reports that while domestic crush has also reduced by nine percent, the largest decline is in exports, especially to the European Union, the United Arab Emirates, China, and Japan. This reduction has led importers to seek alternatives in Australia, which is forecasting record canola shipments. Canada's domestic canola oil exports are down 20% in the first three months of the crop year, and oil production is expected to drop by one million tons from the previous year. The oil's extraction rate has also decreased due to high temperatures during seed development, leading to a lower oil content in the crop.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Analysts thought Canadian canola exports would be the biggest casualty of this year’s short crop and so far that appears to be the case. Exports were down almost 50 percent through the first three months of the 2021-22 campaign compared to a nine percent reduction in domestic crush, according to the United States Department of Agriculture. That is the result of Canadian farmers harvesting 12.6 million tonnes of the oilseed, the smallest crop in 14 years. Sales to all of Canada’s major buyers are way down but some have fared worse than others. “Exports to the (European Union) fell by nearly two-thirds, the (United Arab Emirates) experienced a 50 percent dip and China and Japan saw 40 percent declines,” stated the USDA in its recent Oilseeds: World Markets and Trade report. The reductions were “more muted” for North American markets with sales to Mexico down 12 percent and the U.S. just four percent. Importers are turning to Australia to displace lost volumes from Canada. The ...

Source: The Western Producer