Use of canola oil ramps up as corn oil supply dwindles
In the Fats and Oils report for October, USDA noted disappearance of refined canola for processing was close to 172.4 million pounds, down just 2 million pounds from September (which was the second highest monthly U.S. use recorded). Demand for canola oil has been on the rise as refined corn oil availability has declined, especially in 2020 as corn processing volumes have been lower.
Monthly production of refined corn oil has ranged between 150 million and 200 million pounds since USDA began reporting volumes in January 2017. However, production this year since May has averaged just 154 million pounds per month, down 12 percent from usual supply volumes.
As supply declined, refined corn oil pricing shot higher, rising 30 percent between March and June. Pricing has moderated very slowly since June, with the average level in October down 15 percent from the June high but still up more than a third from October 2019.
Conversely, supply and use of canola oil have increased and pricing has been notably lower than corn oil’s, taking away some of corn oil’s share in the food industry.
Disappearance for processing: Refined corn oil vs. canola oil
Posted by: Information Services Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.