Canola oil is derived from the cultivation of a rich plant group known as rapeseeds. Recently, the market for rapeseeds has been rising. With cooking versatility and renewable fuel being exported with high demands, the canola market is predicted to continue high prices in 2021-22 according to international analysts.
In 2021, Canada supplied Europe with one-third of the continent’s canola imports; 6.4 million tonnes were exported between 2020 to 2021. Crusher demand from the European Union is expected to continue at 23.7 million tonnes. Yet, the region’s imported canola demands will drop by about 4 000 tonnes.
Weather patterns in Europe had lent themselves to bountiful rapeseed production. However, if China continues to purchase large volumes of rapeseed oil from the area, rapeseed oil demand would largely surpass the predicted forecast.
Due to COVID-19 restrictions, biodiesel derived from plant demand in Europe fell about 500 00 tonnes in 2020. In total, there were one million tonnes of lost seed sales. Demand was off to a slow start in 2021, but it is expected to make a full recovery before 2022.
Biodiesel demands in North America are steadily increasing. Driven mainly by the United States, the fuel demands have been predicted to rise by 41 percent from 2021 to 2022.
Industrial demand for crushers is expected to hit 5.5 million tonnes in the next year and a half, up from around two million tonnes in 2011 and 2012. Growers can expect a higher going rate for their canola yields in the harvest season.