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

[AlbertaFarmer5]

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 shit together as an industry.

You had me on board for your first two posts. Then lost me with the third.
Producers will end up bearing the costs.

Very few of the countries who import our products care about any environmental footprint so there won't be any premium.

We will just add layers upon layers of regulations and red tape and bureaucracy and price ourselves out of most export markets. Probably even price ourselves out of our own domestic markets.

I would be in favor of the organic model where producers, processors and exporters can voluntarily sign up for the environmentally sustainable program and cater to the niche markets they develop. If the premium is worth the cost, producers will flock to the system.

[Blaithin]

IMO genetics need to be ahead of the game for oil.

If companies start discounting and paying premiums based on oil, there’s going to be a lot of angry farmers for years until the genetics get there. Especially if there is something in the newer varieties that’s contributing to less oil.

Most sales to my recollection are for around 41% oil. Most farms are there. If sales change to mainly want 45%, target will be harder to hit. If premiums are paid for over 45, a handful of farms will benefit, but if discounts are applied for under 40, 43, 45, etc. then more are going to be docked. Based on my experience those are going to be the farmers already getting hit with poor yields and damage issues. It’s not a situation that needs to be jumped into and compound issue on issue on issue.

If end use processors really want higher oil then there’s no reason the seed companies aren’t already trying to stabilize, increase, and figure out consistency on oil production.

There needs to be research done on what factors farmers can do for oil. We know fertilizer can increase protein in wheat. We know stress can increase protein in wheat. I’ve heard nothing if fertilizer will increase oil, or decrease it. Stress certainly seems to decrease it.

While the geneticists work on varieties for oil, variables that impact outside of genetics also need sorted out.

It’s a great, big, knotted ball of twine and the first step to untangling it is not docking the farmer. You aren’t going to get premiums without getting discounts.

[westernvicki]

Alberta Farmer, the results of the GIFS study prove that we are the most environmental farmers in the world. We have increasing pressure to reduce our carbon footprint. Could it become like "Angus Beef"? "Made with Western Canadian Environmentally Sourced" Pulses, Oilseed & Grains can have value. Is there a dollar in that now, no. Are their companies that would prefer to source food that has verified labels, yes? Therefore, claiming the brand that we are the world most environmental farmers is positive and
actually not that difficult to carry!

[AlbertaFarmer5]

If all we have to do is slap a label on it backed up by the IGIFS study, then go for it. I have my doubts that it will be that easy.

I expect a customers will want to see some proof of compliance before they will pay a premium for an identical product.

[LWeber]

most sales to my recollection are for around 41% oil.

36 years of canadian canola crush yield and oil content
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And there is this gem: The oil content of Canadian canola meal tends to be relatively high at 3.5% compared with 1–2% oil content in canola meals produced in most other countries. (SCIENCE DIRECT - 2016)
([url]https://www.sciencedirect.com/topics/agricultural-and-biological-sciences/canola-meal[/url])??

[Wheatking]

I wonder what the oil content is between varieties. I know some people would balk at getting paid by oil % but doesn't the majority of the value come from the oil and not the meal, shouldn't we be striving to get that oil content as high as possible. But I guess if the crushers aren't complaining and are happy about it, maybe I should too. Just seems maybe we should be doing better.

[Jordy2323]

I wonder what the oil content is between varieties. I know some people would balk at getting paid by oil % but doesn't the majority of the value come from the oil and not the meal, shouldn't we be striving to get that oil content as high as possible. But I guess if the crushers aren't complaining and are happy about it, maybe I should too. Just seems maybe we should be doing better.

The downside would be, that if there was a farming practice, or a variety that would increase oil %, the farmer might briefly get a premium.
But that would then quickly become the new standard... the premium would dissappear, and all you would have left are discounts for anything below the new standard.

[LWeber]

I wonder what the oil content is between varieties. I know some people would balk at getting paid by oil % but doesn't the majority of the value come from the oil and not the meal, shouldn't we be striving to get that oil content as high as possible. But I guess if the crushers aren't complaining and are happy about it, maybe I should too. Just seems maybe we should be doing better.

UK oilseed **** (OSR) prices may have fallen from their approximate £600/t highs, but maximizing oil content to optimize bonuses paid on top of yield is as important as ever.

That is the message from ProCam agronomist, Daniel Hatchett, who says if an oil bonus pays 1.5% of the crop’s purchase price for every 1% of oil content above 40%, there is a lot to play for.

“The key is to understand what influences oil production so agronomy can be geared accordingly,” says Daniel. “Oil content is affected by plant density, the number of pods per plant and the number of seeds per pod. For maximum oil content, photosynthesis must be maximised. Maintaining the correct amount of green area in the crop is therefore key.”

Nitrogen (N) is a prime driver of photosynthetic activity and yield, says Daniel, however, applying excessive N to push yield can adversely affect oil content, while severe sulphur (S) deficiencies can also impact on both seed and oil yield.

“For a tonne of seed yield, 15kg/ha of S is suggested to be needed. If S is deficient, as well as having yield implications, the chlorophyll content of seeds is raised and they turn green. This reduces quality for crushers and potentially oil content,” he explains.

“As well as macronutrients, micronutrients must also be in balance. Manganese deficiency alone can drastically decrease the crop’s ability to photosynthesise, even without visible symptoms. But an important period for influencing crop green area is around flowering,” he says.

“We know the disease sclerotinia can have a significant impact on yield, and controlling it with a robust fungicide at the correct flowering stage is critical. By utilising an SDHI and/or strobilurin for this, there’s an additional greening benefit which is extremely useful in building yield – even in the absence of disease.”

In addition, Daniel says maximising light penetration throughout the crop is hugely important for photosynthetic activity, so checking the crop’s green area index and selecting a fungicide with PGR activity is critical where canopies are overly thick.

“The canopy can be optimised further by applying a biostimulant treatment containing nutrients and pidolic acid at yellow bud stage. This is because pidolic acid enables the crop to use N more effectively, helping to promote green leaf retention and chlorophyll content, both of which are crucial during pod-fill. Indeed, late N in OSR has been found to push yields and oil content. So a pidolic acid-containing treatment also fits well ahead of a later foliar N spray applied at mid-flowering.”

At the end of the season, Daniel says it is crucial to get harvest management right. “Seed filling in OSR occurs over roughly six weeks, with most oil being laid down during the second half of this. Desiccating or swathing too early risks losing up to 2% a day in yield and compromising oil content. Alternatively, harvesting too late risks seed losses due to pod shatter. So it’s about finding a balance.

“Applying a well-timed pod sealant against shatter and choosing the optimum time to harvest can substantially raise oil yield. It may be tempting to tank-mix a pod sealant and desiccant, however their optimum timings often don’t coincide. Last season’s high oil contents could potentially be attributed to pod sealants being applied separately from desiccation due to the crop’s high value. This year should be no different. Doing everything to preserve yield and promote oil content is likely to give the best financial reward.”

AUSTRALIA BONUS PROGRAM

Eastern Australian farmers are paid for their canola crop on the basis of a bonification scheme, providing a bonus of 1.5% for every percentage point above 40% oil, on an as received moisture content. For a crop with 46% oil, the farmer would be paid a 9% bonus. This also works in reverse with a similar penalty rate for every 1% below 40% oil. In Western Australia, the base oil content for payment is 42% and the penalties for low oil content are greater than in eastern states.

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In the end you have to comfortable with the hand you have been dealt and ok taking a price that no one gives a shit how much $ farmers make.

Friday's AWB best bid in the Malee, Victoria, AUS was CAD$813.91/MT - for a basis of PLUS $168.01 for 44% oil content.

Friday's cash bid at Lloyd crusher was CAD$604.90/MT- with a basis of MINUS $41.00/MT.

It was only a CAD$209.01/MT difference...nothing to see here.

Why worry about 1-2.5% oil content in the meal?
The third highest canola oil price sale reported to STATSCAN in August was $1679.10/MT and that is nearly $42.00/MT at 2.5% that went in the meal. That $42/MT equates to $32.00/acre even with a 32-33 bu yield.

It drives me insane that after watching farmers struggle with trying to break even from 1981 to 2008, and after the last 15 years of decent returns, it has become acceptable to stop asking questions and take what you get... The Palliser Wheat Growers alumni would puke.

[LWeber]

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

Thanks for weighing in Malee...

[Landdownunder]

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.

trick then is to sell to a flat cash buyer no oil bonus but higher base price. but your correct premiums and discounts apply.

[LWeber]

trick then is to sell to a flat cash buyer no oil bonus but higher base price. but your correct premiums and discounts apply.

In Ukraine ****seed prices grow under the influence of active demand - Last week prices in the domestic market of ****seed in Ukraine continued to grow against the background of continued demand from a number of export-oriented companies and higher prices in the external market of this crop. At the same time, the pace of trade on the Ukrainian market continued to gradually slow down due to the reduction of stocks. On the export direction of ****seed demand prices increased to 24000-24600 UAH/t CPT-port (CAD$803.50 to $823.13/MT or CAD$18.22 to $18.66 per bushel) and continue to increase due to the growth of ****seed quotations in Europe. (APK) AUS AWB closed CAD$17.48/bu with no oil bonus. ADM Lloyd closed at $13.70/bu yesterday. Best send this to all your non-subscriber friends so they quit selling for $3.78 and $4.96/bu less than AUS and UKR. In SK, using the SK AG estimated canola yield of 33 bpa, that is $124.74 an acre better using AUS prices and $163.68/acre using UKR prices. Good thing we don’t have an Export Sales Reporting program to put everyone on the same information level.
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[farming101]

Nearly all the canola oil exported goes to the US and the majority of that is now refined not crude. And a lot of that is specialty oil. So there's a premium attached to that.
Stat Can September Canola seed exports price reported at 670.48/t average for total world exports. Guess that's why business is brisk

[Landdownunder]

Interesting my guesstimate australia produces 5.5 million tonne canola?? Domestic use maybe 500,000 tonne so 5 million exported in SE Asia/asia and EU markets i think.

Same markets you do. Of course we have blue water adavantage into some markets but so do you.

So wow theres some discrepancies in pricing as larry points out.

[crusher]

So when is the arbitrage going to take place? If I was a buyer I'd be buying from Canada.