Agricultural News
The Battle Between Wheat and Canola - Rabobank's Outlook for Grain and Oilseeds in Canada
Mon, 18 Dec 2017 16:16:58 CST
The continued global demand for wheat with a higher protein content is good news for Canada's exports. That leaves wheat producers in a good place, but they're not the only ones - the demand for canola oil is expected to provide higher margins than for wheat. An increase in the domestic crush of Canadian canola is anticipated due to overall demand for canola oil, even though global surpluses of soybean and palm oil are pulling prices down slightly. These are the findings in a new report from the RaboResearch Food and & Agribusiness group.
The report, "Wheat and Canola Battle for Dominance: Canada's Long-Term Grain & Oilseed Outlook" discusses the wheat and canola crops and anticipated changes in the market over the next eight years.
"The total harvested area for grains and oilseeds in Canada has reached a new record in 2017, at over 25.6 million hectares (63.3 million acres)," notes RaboResearch Food & Agribusiness, Senior Grains & Oilseeds Analyst Sam Funk. "It was also the first year that canola held the largest share of planted area."
It is critical Canadian producers take advantage of the high protein wheat while there is still a premium for it in the global market. Shifts in global vegetable protein and oil markets, specifically soybean and palm, will impact domestic crush and export demand for Canada's canola crop.
Source - Rabobank
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