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Canada rushes to crush more canola despite crop crunch

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Soaring demand for Canadian canola oil used in food and fuel has resulted in plans for a massive increase in capacity to process canola seeds, including this week’s announcement https://www.reuters.com/business/energy/federated-co-op-agt-build-c360-mln-canadian-canola-crush-plant-2022-01-17 of a C$360 million ($289 million) crush plant project.

But while buyers are lining up, some analysts wonder if there is enough of the crop to go around and doubt all the projects will proceed.

Canola hit record high prices last year due to strong vegetable oil demand and a severe Canadian drought that shrunk crops in the world’s top producing country. Palm and soybeans are also in tight supply https://www.reuters.com/article/vegoils-world-output-insight-idTRNIKBN2G1019, helping drive up food inflation.

Federated Co-operative Limited (FCL) and partner AGT Food and Ingredients said on Monday they would build a Saskatchewan plant to crush 1.1 million tonnes of canola annually to supply oil for FCL’s renewable diesel facility.

Richardson International, Ceres Global Ag Corp, Cargill Inc and Viterra Inc announced similar plans last year, drawn by demand for canola oil in foods like margarine and salad dressing, or for production of low-emitting fuels.

Combined, the plans would increase Canada’s canola crush capacity by 6.8 million tonnes, or 62%.

That is a tall order to fill for Canadian farmers, whose canola production peaked in 2017, said Marlene Boersch, managing partner of Mercantile Consulting Venture. She is skeptical that all of the crush plants will materialize.

“We do have a (crop) production problem. I don’t think we’ll see these substantial investments for years to come.”

Output concerns go beyond last year’s drought. Canola acreage also hit a peak in 2017 and yields were flat from 2017-2020 before the drought.

Patrick Bergermann, FCL’s associate vice-president of energy roadmap, expects its plant to purchase some canola that would otherwise go for export, which usually accounts for about half the annual crop.

FCL’s plant, which may open in 2025, pending Ottawa finalizing its clean fuel regulation, will add value both from generating oil for fuel and from meal for use as a potential food protein source, he said.

“There’s still ample opportunity for the industry to add crush capacity,” he said.

For crushers to attract more canola seed away from export channels, they would have to bid aggressively for it, which would reduce margins, said Ken Ball, a commodity futures advisor with PI Financial. He expects project delays or cancellations.

Saskatchewan farmer Bernie McClean says the new crush plants will reduce farmers’ vulnerability to trade restrictions on Canadian exports, such as from China. Farmers may boost plantings if they can successfully grow canola in hotter, drier areas, he said.

McClean, who sows 40-50% of his fields with canola, does not intend to plant more in the future, however. Sowing canola too often on the same fields can spread crop disease.

“If we get too carried away, Mother Nature has a way of coming around to bite us in the butt,” McClean said.

The Canola Council of Canada industry group sees production rising to 26 million tonnes by 2025, a 33% increase from pre-drought output, based on higher yields per acre.

Canola Council Chief Executive Jim Everson expects productivity to increase as companies develop more robust seeds using gene-editing technology, but he could not identify any specific, promising seed products in development.

Demand, however, continues to rise, enticing the crushers.

A proposed rule is expected early this year from the U.S. Environmental Protection Agency approving canola for use in making renewable diesel or greener jet fuel, Everson said.

North American biofuels could consume some 6.5 million tonnes of canola annually by 2030, nearly four times the current volume, he said.

($1 = 1.2458 Canadian dollars)

 

(Reporting by Rod Nickel in Winnipeg; Editing by Marguerita Choy)

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Langford, Heim lead Rangers to wild 13-8 win over Blue Jays

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ARLINGTON, Texas (AP) — Rookie Wyatt Langford homered, doubled twice and became the first Texas player this season to reach base five times, struggling Jonah Heim delivered a two-run single to break a sixth-inning tie and the Rangers beat the Toronto Blue Jays 13-8 on Tuesday night.

Leody Taveras also had a homer among his three hits for the Rangers.

Langford, who also walked twice, has 12 homers and 25 doubles this season. He is hitting .345 in September.

“I think it’s really important to finish on a strong note,” Langford said. “I’m just going to keep trying to do that.”

Heim was 1-for-34 in September before he lined a single to right field off Tommy Nance (0-2) to score Adolis García and Nathaniel Lowe, giving Texas a 9-7 lead. Heim went to the plate hitting .212 with 53 RBIs after being voted an All-Star starter last season with a career-best 95 RBIs. He added a double in the eighth ahead of Taveras’ homer during a three-run inning.

Texas had 13 hits and left 13 men on. It was the Rangers’ highest-scoring game since a 15-8 win at Oakland on May 7.

Matt Festa (5-1) pitched 1 1/3 scoreless innings to earn the win, giving him a 5-0 record in 13 appearances with the Rangers after being granted free agency by the New York Mets on July 7.

Nathan Eovaldi, a star of Texas’ 2023 run to the franchise’s first World Series championship, had his worst start of the year in what could have been his final home start with the Rangers. Eovaldi, who will be a free agent next season, allowed 11 hits (the most of his two seasons with Texas) and seven runs (tied for the most).

“I felt like early in the game they just had a few hits that found the holes, a few first-pitch base hits,” said Eovaldi, who is vested for a $20 million player option with Texas for 2025. “I think at the end of the day I just need to do a better job of executing my pitches.”

Eovaldi took a 7-3 lead into the fifth inning after the Rangers scored five unearned runs in the fourth. The Jays then scored four runs to knock out Eovaldi after 4 2/3 innings.

Six of the seven runs scored against Toronto starter Chris Bassitt in 3 2/3 innings were unearned. Bassitt had a throwing error during Texas’ two-run third inning.

“We didn’t help ourselves defensively, taking care of the ball to secure some outs,” Blue Jays manager John Schneider said.

The Blue Jays’ Vladimir Guerrero Jr. had a double and two singles, his most hits in a game since having four on Sept. 3. Guerrero is hitting .384 since the All-Star break.

TRAINER’S ROOM

Blue Jays: SS Bo Bichette (calf) was activated and played for the first time since July 19, going 2 for 5 with an RBI. … OF Daulton Varsho (shoulder) was placed on the 10-day injured list and will have rotator cuff surgery … INF Will Wagner (knee inflammation) was placed on the 60-day list.

UP NEXT

Rangers: LHP Chad Bradford (5-3, 3.97 ERA) will pitch Wednesday night’s game on extended five days’ rest after allowing career highs in hits (nine), runs (eight) and home runs (three) in 3 2/3 innings losing at Arizona on Sept. 14.

Blue Jays: RHP Bowden Francis (8-4, 3.50) has had two no-hitters get away in the ninth inning this season, including in his previous start against the New York Mets on Sept. 11. Francis is the first major-leaguer to have that happen since Rangers Hall of Famer Nolan Ryan in 1989.

AP MLB:

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Billie Jean King set to earn another honor with the Congressional Gold Medal

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WASHINGTON (AP) — Billie Jean King will become the first individual female athlete to be awarded the Congressional Gold Medal.

Reps. Brian Fitzpatrick of Pennsylvania and Mikie Sherrill of New Jersey announced Tuesday that their bipartisan legislation had passed the House of Representatives and would be sent to President Joe Biden for his signature.

The bill to honor King, the tennis Hall of Famer and activist, had already passed unanimously in the Senate.

Sherrill, a Democrat, said in a statement that King’s “lifetime of advocacy and hard work changed the landscape for women and girls on the court, in the classroom, and the workplace.”

The bill was introduced last September on the 50th anniversary of King’s victory over Bobby Riggs in the “Battle of the Sexes,” still the most-watched tennis match of all-time. The medal, awarded by Congress for distinguished achievements and contributions to society, has previously been given to athletes including baseball players Jackie Robinson and Roberto Clemente, and golfers Jack Nicklaus, Byron Nelson and Arnold Palmer.

King had already been awarded the Presidential Medal of Freedom in 2009. Fitzpatrick, a Republican, says she has “broken barriers, led uncharted paths, and inspired countless people to stand proudly with courage and conviction in the fight for what is right.”

___

AP tennis:

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Account tweaks for young Instagram users ‘minimum’ expected by B.C., David Eby says

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SURREY, B.C. – Premier David Eby says new account control measures for young Instagram users introduced Tuesday by social media giant Meta are the “minimum” expected of tech companies to keep kids safe online.

The parent company of Instagram says users in Canada and elsewhere under 18 will have their accounts set to private by default starting Tuesday, restricting who can send messages, among other parental controls and settings.

Speaking at an unrelated event Tuesday, Eby says the province began talks with social media companies after threatening legislation that would put big tech companies on the hook for “significant potential damages” if they were found negligent in failing to keep kids safe from online predators.

Eby says the case of Carson Cleland, a 12-year-old from Prince George, B.C., who took his own life last year after being targeted by a predator on Snapchat, was “horrific and totally preventable.”

He says social media apps are “nothing special,” and should be held to the same child safety standards as anyone who operates a place that invites young people, whether it’s an amusement park, a playground or an online platform.

In a progress report released Tuesday about the province’s engagement with big tech companies including Google, Meta, TikTok, Spapchat and X, formerly known as Twitter, the provincial government says the companies are implementing changes, including a “trusted flagger” option to quickly remove intimate images.

— With files from The Associated Press

This report by The Canadian Press was first published Sept. 17, 2024

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