AUS vs CAN RS Oil Content: Any comments as to why?

[Wheatking]

Back to the canola oil discussion. I was always under the impression that Canadian canola had a much higher oil content than in Australia. I know when I was on a harvest run in Australia, I thought it was always around 42%. I know when I haul to ADM their machine says ours in 48-50%, but I have no idea if that is calibrated.

Perhaps if the grain buyers would pay on oil content, breeders would start considering oil content when releasing new varieties.

[goalieguy847]

Oil content is always higher when straight cut vs swathed. Whsts the harvest process in aussie? Both, like here , or mainly straight?

Could you imagine the games they would play paying us on oil content?
* shudders*

Hauled some canola in last week. Same bin. 1.5% dockage. Next load 6. I asked them to re probe.

Came back as 1.3 lol .

[the big wheel]

But the fact remains were getting screwed if our oil content is higher so our crush plants would know this and are charging us a screw job basis and making extra money at our expense?

[Blaithin]

Oil seems to be really vulnerable to drought and other stresses. Canola coming in from last year or areas with rain and good soil can easily be 43+. Canola coming in from drought, stressed, and poor land from this year isn’t breaking 40.

I’ve also noticed that the higher the green, typically the higher the oil. Got a 3 Can for green? Oil is probably close to 50.

Crushers have no reason to pay for oil content. Exports, while oil is usually part of the sale contract, aren’t really paying more to get higher oil. If exports are making the market price then the crushers only need to pay what the export is.

There’s also some other thing they test the oil for. I can’t recall it off the top of my head. To do with the fatty acid I believe but I don’t know the bearing on it.

Also keep in mind sprout years. Almost can’t find canola that isn’t sprouted here. Likely has an impact on oil content and quality. Sprouts seem to be something becoming more and more common. I don’t ever recall seeing them more than once or twice a year prior to the last few years.

[Landdownunder]

Canola Oil & Admix Calculations
Oil bonification calculation
The oil bonus/penalty to the base price is calculated at:
• 1.5% of the base price for every 1% oil, or
• 0.15% of the price for every 0.1% oil, above or below the 42% oil content base.
Oil bonification is uncapped in SA, Vic, NSW and QLD. In WA oil bonification is capped at 44.5% oil ie. no further
price adjustment even if oil content exceeds 44.5%.
Admixture calculation
Companies makes payment based on the clean seed weight. Clean seed weight is calculated after deduction
for admixture per AOF as follows:
Delivered tonnes X Non Admix Percentage (i.e. 100% - admix percentage).
Example oil & admix calculations
Based on the following example data, a load of 51.84mt delivered to site ‘X’ at $600/mt, the following calculations
show how the adjustments are made for oil at 44.5 % and admixture of 0.86%
Oil bonification
Delivery Site Price X 1.5% X % of oil above/below 42% base = $Bonus/Penalty applied to base
delivery site price.
Eg $600/mt X 0.015 X 2.5 = $22.50 bonus
Oil adjusted site price = $622.50 /mt
Admixture calculation
100% - Admix % X Delivered Tonnes = Clean Seed Weight tonnes to be paid
Eg (1 – 0.0086) X 51.84mt = 51.39mt
Clean Seed Weight / Paid Weight = 51.39mt
Load value
Oil adjusted price/mt X Clean Seed Weight = Load Value

The years when oil is say 48% and base price is $900 big bonuses?

[farmaholic]

Mallee(LOL)...
In Canada, in the red milling wheat market, it seems the discounts below the base protein content are greater than the premiums above the base.

I bet they would do the same thing for oil content above and below the base oil content in canola.

In years where someone grows extremely high protein wheat we may not get compensated above a certain protien content.

[AlbertaFarmer5]

Blaithin, thank you for that informed post.

If there's one thing we are really good at out this far west it's growing number three canola.

I'm imagining a future scenario where our high Green seed canola is worth more than the number one because of the higher oil content.

I'm sure that's the way it will work out...

[Blaithin]

Blaithin, thank you for that informed post.

If there's one thing we are really good at out this far west it's growing number three canola.

I'm imagining a future scenario where our high Green seed canola is worth more than the number one because of the higher oil content.

I'm sure that's the way it will work out...

Doesn’t mean it’s good oil. Maybe they have to do more of whatever to it to get it to be a nice yellow instead of having green chunks ????

[AlbertaFarmer5]

Doesn’t mean it’s good oil. Maybe they have to do more of whatever to it to get it to be a nice yellow instead of having green chunks ????

Last I checked the biodiesel market doesn't care if their oil looks green, unlike the edible oil market. Now that renewable diesel is a significant end-use, in theory all of the higher Green seed could go that route and not require any extra processing.

In the traditional channels, I was dreaming that the discounts for extra processing for the Green seed would be lower than the premiums for the additional oil.

[makar]

Doesn’t mean it’s good oil. Maybe they have to do more of whatever to it to get it to be a nice yellow instead of having green chunks ????

Back when we had a local crusher they held a customer appreciation bbq cooked in green oil. No one knew the difference.

[Blaithin]

People are fickle with food they can see.

[GDR]

From what I've heard the issue with oil from greens is an issue of storage. Goes rancid faster.

[westernvicki]

Why do we not pay for higher oil content in Canada.
If we did genetics would follow.

We need to be the best in the world at producing commodities to be competitive. We have so many cost disadvantages from freight, to carbon tax, and higher costs of production all over, we cannot be grounded by marketing disadvantages.

[westernvicki]

Protectionism is real. It will get worse. This is why we need to have a Western Canadian policy voice and think tank.

Yesterday.

[westernvicki]

And this is why we need to brand our production as the most environmental in the world.
We have the study from Global Institute for Food Security which placed us best in the world as a brand.

Very simple. Farmers need get our .... together as an industry, debate policy and make changes where necessary.

Time to for earnest debate. Indeed driving genetics to higher oil is like driving genetics to drive higher protein in peas: the money is in the oil, the money is in the protein.

Now go.