Canola oil faces growing competition from soybean oil in the US biofuel market
In Canada, Glacier Farm Media reports that Canadian canola oil is facing stronger competition in the US biomass-based diesel market as domestic soybean processing capacity expands and soybean oil receives more favorable treatment under the 45Z clean fuel production tax credit. CoBank says soybean oil currently has a tax-credit advantage of approximately $0.33–$0.35 per gallon over canola oil, in addition to its existing price advantage. US soybean-crushing capacity has grown 25% over five years, with further expansion planned. Nevertheless, higher Renewable Fuel Standard targets for 2026 and 2027 are expected to sustain substantial demand for biomass-based diesel feedstocks. Canadian industry representatives say canola oil remains competitive and recent demand is improving.
Category: Fuels
