Low oil prices weigh on Canadian biofuels demand but producers seek higher blend

In Canada, low oil prices are hitting demand for ethanol, with the Canadian Renewable Fuels Association only expecting refiners to blend the mandated 5% rather than up to 7.5% as they have done in the past. It expects biodiesel to only be blended at the mandated 2% as well but is lobbying for the mandate to rise to 5% by 2020. The lack of demand is impacting prices for corn and soybeans, which is having a negative trickle down effect to the farm level.

Category: Fuels