Canada recorded the export of 3 million tonnes of rapeseed oil during the 2022/23 marketing year (MY), reaching a record volume of 2.6 million tonnes imported by the United States, as indicated by a report from the Department of United States Agriculture (USDA).
Following the US Environmental Protection Agency's (EPA) decision in December to approve rapeseed oil for the Renewable Fuel Standard (RFS) program, there has been a significant increase in industrial use of the oil in the US during the 2022/23 marketing year. (August to July), exceeding double, according to the USDA's November Oilseeds: World Markets and Trade report.
Despite record rapeseed oil exports to the US, Canada's total exports were lower compared to previous years.
Transformations in the global rapeseed oil market
The biggest drop in Canadian oil exports was to China, which reduced its market share from 35% in 2020/21 to 5% in 2022/23, due to high US demand for biodiesel feedstock.
Since 2021/22, China has mainly replaced Canadian rapeseed oil with imports from Russia and Belarus, the report points out.
The United States is expected to import record volumes in 2023/24. This will total 3 million tons destined for industrial consumption. Demand is driven by renewable diesel, as highlighted in the USDA report.
Canadian rapeseed oil exports are anticipated to increase in 2023/24, reaching 3.2 million tonnes.
With the growth in oil exports, Canadian domestic consumption was projected to decrease slightly, offset by the increase in soybean oil consumption. For 2023/24, the forecast indicated that Canada would import a record 150,000 tonnes of soybean oil, mainly from Argentina.
Meanwhile, the USDA revised its global oilseed forecast for 2023/24, increasing by 2 million tonnes. The total now stands at 661 million tons. Growth in Russian rapeseed and soybean crops, Ukrainian soybean and sunflower crops, and US soybean crops drives this increase.
Source: Oils & Fats International
