This episode delivers a comprehensive analysis of the global canola market.
- Canada is expecting a 27% increase in canola yield, projecting at least 21 million tons for the season—an uptick of 1.6 million tons compared to last year. High threshing rates in Saskatchewan and Manitoba are driving this growth. However, trade tensions, particularly with China, have curtailed export demand, with unsold stocks potentially reaching 3 million tons by July 2026. This surplus is putting downward pressure on domestic prices, with future trends likely influenced by developments in the biofuels sector.
- In China, trade relations with Canada remain strained, with provisional tariffs of 75.8% imposed on Canadian oilseed imports. While these restrictions continue to limit trade, the European Union is emerging as an alternative market, anticipating 1.4 million tons of Canadian canola imports this season. Resolution of trade disputes could significantly reshape market flows.
- Moldova is seeing growth in rapeseed planting, aided by 45,000 imported planting units sufficient for 130,000 to 135,000 hectares. However, some producers are bypassing standard agricultural practices by using harvested crops for self-sowing, potentially boosting production by 10% to 20%. After a 15-year hiatus, Moldova has resumed rapeseed oil processing, with recent exports totaling 6,400 tons.
- Ukraine faces regulatory uncertainty in rapeseed exports due to a lack of duty-free protocols. Domestic processing is expected to surpass 1 million tons, primarily serving the EU and China. In Australia, canola exports reached 180,037 tons in August, a 16% increase from July but down 44% from the previous year. Dry conditions have led to a downward revision in yield forecasts from 6.4 to 6.1 million tons.
- Brazil has recorded its largest canola harvest, with a 43% increase in cultivated area from 2024, totaling 218,000 hectares. This expansion aligns with rising demand for biofuel production, supported by new investments in canola-based biodiesel facilities. The state of Rio Grande do Sul plans to expand cultivation to 1 million hectares, driven by enhanced practices and the high oil content of canola.
- In Russia's Krasnodar Territory, 71,000 hectares of winter rapeseed have been sown for the 2026 harvest, a 7% year-over-year increase. Broader autumn sowing plans include 1.8 million hectares, reflecting the region’s strategic importance in both domestic supply and export markets.
