Investment in biodiesel

[wd9]

Well, actually they do. As the protein becomes more plentiful, the requirement for carbohydrates then goes up. With the proposed mandate in both ethanol and biodiesel starch and oil requirements for those specific processes will go up. Crush and DDG's availability goes up. That would be legislated demand. If the corresponding feeding industry goes up, the competition then for carbs for feeding would directly compete against the energy sector for acres. Let alone the world's continuing demand for food oil, solutions to trans, special milling wheats, etc.

If the corresponding feed industry does not go up a glut of the protein products goes up seriously affecting meal prices lower which would then be taken away from the value from the seed. It won't lower the value of the oil because stable requirements of oil will maintain that price.

[rain]

I understand what your saying . Its just that we have never seen canola meal replace grain for energy in cattle.
Protein for cattle feed is not as critical as hogs and poultry. Most feedlots in Alberta now use 10-12% protein supplements. These supplements are mostly used as a carrier sources for rumensing and tylan type products.

For most large feedlot operations consider energy as the critical input, barley preferred, corn and wheat when economics, or supply dictate a change.

In the states however large feedlots with close proximity to ethonal plants are replacing grains with DDG as supply is readily available and close by. The results have been very good.

[rain]

wd9 for the sake of interest canola meal is worth $175.00/MT delivered Calgary region. Barley is being bought at $160.00, feed wheat trading $165.00 to $170.00. Canola meal is actually closer than I thought it was to what you where saying.

It can't replace grain calgary region, but in Lethbridge it could be considered.