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Canola News
11/17/2003
Canola Crop Quality Results
Canola samples from North Dakota and Minnesota have been analyzed in the NCGA’s 4th annual U.S. Canola Survey. Preliminary results indicate extremely favorable quality.
Out of 154 samples collected from the region, 90% grade at #1. This is up from the 2002 canola crop. Dockage levels were down this year as well, by 34%. Green counts were also down in 2003 to an average level of .57% versus .88% in 2002.
These findings were consistent with the quality observed by crushers in the region and by local elevators taking deliveries of canola. Growers have also reported excellent yields in most regions of the U.S. this year.
Oilseeds Market On Fire
The canola market has enjoyed a late summer/early fall rally following the drop in US soy production this year and a huge Chinese demand for commodities. China has been a large buyer of soybeans and canola, indicating a considerable demand for vegetable oil. China took up to 200,000 tons of canola oil from Canada recently as well as 30,000 to 50,000 tons from the European Union. More Canadian canola oil sales to China are possible, which will be good news for canola prices in the U.S.
Longer term, according to GrowCanola.com, prices will likely be dictated by the weather in South America and Chinese demand. There may eventually be concerns if we don’t see more rain in the state of Parana and if Asian soy rust continues to emerge.
Prices for current delivery to local elevators have exceeded $11.00. These prices are certainly welcomed by canola growers this year. Given the impressive yields reported by many growers across the state this year, these prices are resulting in a very successful year for canola growers. Canola prices did drop significantly along with other oilseeds on November 19 based on perceived trade tensions between the U.S. and China. This shows how Chinese demand will continue to heavily influence the oilseeds markets.
New Crop Canola Contacts Very Favorable
An unusual situation has developed for canola growers this fall with new crop canola bids being offered early and at very favorable prices. New crop (2004) canola contract prices from the region’s two major canola crush plants, ADM Velva and Canamera in Altona have offered contracts in the $10.75 to $11.00 range. This is an extremely favorable price compared to historical averages for canola. It is also an extremely good price when one looks at new crop prices for other crops.
Growers are urged to strongly consider these price levels as they make their planting decisions for 2004.
Blackleg is Manageable in Canola
Blackleg Is Manageable In Canola
Blackleg in canola has been a buzzword in many coffee shops in some canola growing regions of North Dakota this year.
The Northern Canola Growers Association recently gathered a group of key researchers, industry and canola growers together at a meeting in Devils Lake to discuss the disease that has raised some questions among canola growers this year. Derwyn Hammond, agronomist with the Canola Council of Canada, also attended the meeting to provide an update on the ways in which the Canadian canola industry is addressing blackleg in canola.
Blackleg is a disease that has been present in Canada for over 20 years and has been detected in the canola-growing region of the U.S. as well. Incidence levels have been fairly low according to surveys conducted by North Dakota State University except for Cavalier, Pierce and Towner counties.
It was noted that in areas where aggressive blackleg was found, R and MR canola varieties are strongly encouraged. When planting canola in less than a three-year rotation, choose an R variety. In other areas where blackleg is not an issue and a rotation of three years or greater is followed, all varieties are suitable. Proximity to prior year’s canola stubble, weather and moisture conditions play a key role in the incidence of blackleg.
Growers are cautioned that blackleg is not in an epidemic situation and the disease can be managed through several different means. Crop rotations, using resistant varieties, and using good quality seed that has been tested for blackleg and treated with a seed treatment were noted as management practices that can be taken to avoid incidences of blackleg.
More information will be available at grower meetings this winter. The NCGA has also developed a new CD with a presentation on blackleg management that is available to anyone. You can obtain a copy by calling the NCGA office at 223-4124 or visiting our website at northerncanola.com.
Canola Oil Touted For Dustless Roads
There are a lot of gravel roads in Saskatchewan, and that could be worth money to the province’s canola growers.
Gravel roads produce dust, and depending on the outcome of a pilot project undertaken by the provincial highways department, canola oil could soon be used to keep that dust under control.
“I think the market potential is huge,” said Zenneth Faye, a Foam Lake, Sask., canola grower and executive manager of Milligan Bio-Tech Inc.
Milligan is a Foam Lake company that produces a number of industrial products from canola, including a diesel fuel conditioner, biodiesel and a penetrating oil, from lower quality canola.
Canola oil has been used in the past as a dust suppressant in the feed industry, which gave Faye the idea that it might also work on gravel roads.
The idea got its first test as part of a high school science project by Faye’s daughter Ambrely, now an engineering student at the University of Saskatchewan, in co-operation with the local rural municipality.
The results showed canola oil is effective, less expensive and longer lasting than calcium chloride, the dust suppressant normally used.
The company approached the provincial highways department, which was interested enough to buy 8,000 litres of the dust suppressant product for a two-year experiment along a stretch of highway near Foam Lake that had recently been turned from asphalt to gravel.
In August the canola-based suppressant was applied to several sections of road, using varying rates of application.
Rob McGregor, plant manager for Milligan, said preliminary results from the first few months of the trial run are encouraging.
“The testing that has been done so far looks very positive,” he said. “It works, and it seems to be holding up very well.”
Officials with the department of highways were unable to comment on the project last week because of rules preventing government employees from speaking to the media during an election campaign.
However, in a news release issued before the campaign, the local highways official overseeing the project had mainly complimentary things to say about the product.
Thomas Matt, supervisor of operations for the department’s Leross section, said that applied at a rate of one litre per sq. metre the product coated the gravel to a depth of five centimetres.
The Milligan product also works better in wet weather, since as an oil-based product it repels water, while the calcium chloride combines with water to create a greasy surface.
A big selling point for the canola-based suppressant is that it is biodegradable and lacks the negative environmental impacts of calcium chloride.
Matt said the department is reserving judgment until the two-year test is complete, in order to get as much information as possible about issues such as application rates, how long it lasts, residual effects and cost.
“If it pans out, however, I think we will continue to use it,” he said in the news release.
Faye said news of the dust suppressant project has triggered a “tremendous response,” with lots of calls to the company from rural municipalities and towns in Saskatchewan and Alberta.
New Partner For Canola Protein Isolate
Burcon NutraScience Corporation has signed a letter of intent with Archer Daniels Midland Company (ADM) to enter an agreement to manufacture and market the canola protein isolates “Puratein” and “Supertein.”
ADM would complete the development of a commercial process to produce the isolates; develop commercial applications for the two isolates; fund construction of a full-scale commercial plant; and market the isolates worldwide, according to an announcement by Burcon. Final terms have yet to be negotiated.
The canola protein isolates will compete with soy, dairy and egg proteins in the protein ingredient market for use in prepared foods, nutritional supplements and personal care products, says Burcon. The patented process for extracting protein isolates from canola meal was originally developed by BMW Canola Inc. in Winnipeg, MB. Burcon, based in Vancouver, B.C., purchased BMW in 1999.
Decatur, IL-based ADM has extensive experience in processing oilseeds and produces a line of soy protein isolates.
New Vegetable Oil Product Hits Store Shelves
Canadian shoppers can now buy a creamy vegetable oil made with canola that neither burns like butter and margarine, nor spatters like regular oil, according to the manufacturer.
Imperial Culinesse was recently introduced by Unilever Canada. It can be used for frying at higher temperatures—up to 200 °C—than margarine and butter because it contains no milk solids. Most butter and margarine start to brown at 120-160 °C, says Unilever.
The company says spattering is eliminated because the new product contains soy lecithin. However, Imperial Culinesse is canola oil-based and as such contains no cholesterol and 0.8 g saturated fat per 10 ml serving.
The new product comes in a plastic squeeze bottle and should be stored in the refrigerator. For more information on Imperial Culinesse, visit the Web site: http://www.imperialculinesse.com/en/product/index.html
New Distributor For Canola Lubricity Additive
Westward Parts has agreed to distribute the canola oil lubricity additive for diesel fuel manufactured by the Foam Lake, SK-based Milligan Bio-Tech. Westward dealers across western Canada and the northern plains of the U.S. will carry the lubricity additive.
Westward is the first major distributor to sign on with Milligan. It will also perform efficiency tests of the canola oil lubricity additive in one of its fleet trucks.
Meanwhile, two city transit buses in Saskatoon, SK have been running on a mixture of diesel fuel and 5% canola oil lubricity additive since September 2002. The two canola-fuelled buses will be compared to two buses run on diesel fuel alone as part of a two-year project called the Canola Bio Bus.
Milligan manufactures the lubricity additive using canola oil, methanol and a catalyst. Once glycerine settles out of the mixture, the remaining liquid is filtered and the resulting product can be burned as biodiesel.
However, since it gels at temperatures below freezing, the canola product is more effective when blended with diesel fuel. It serves as a lubricity additive that reduces sulphur emissions and decreases engine wear.
RMA Announces Canola Crop Insurance Changes
Several changes have been announced for the 2004 MPCI policies. Some of the basic provisions as well as crop specific regulations are different than last year. Throughout the winter at NCGA meetings and future publications we will provide you with more information regarding the changes. The following is a list of actuarial filing changes for North Dakota Canola MPCI coverage for the 2004 crop year:
• The final planting date in southwest North Dakota has been changed from 5-5 to 5-10.
• The final planting date in southeast North Dakota has been changed from 5-10 to 5-15.
• The late planting penalties have been changed from a production guarantee reduction of 2% per day for the 1st through 5th day and 3% per day for the 6th through 15th day, to the following: 1% per day for the 1st through 5th day and 2% per day for the 6th through 15th day.
• The new rotation statement is as follows:
Insurance will not attach to any acreage on which canola, crambe, chickpeas, dry beans, mustard, rapeseed, or sunflowers have been planted in either of the preceding two crop years (three year rotation) with the exception below:
In a two-year rotation, canola, crambe, chickpeas, dry beans, mustard, rapeseed, or sunflowers cannot have been planted in the preceding crop year and a blackleg resistant variety (MR-R) must be planted with the insured providing proof of variety by the acreage reporting date. A rate surcharge (CR) will apply.
A crop which was planted, and then all plant growth is terminated by chemical or mechanical means prior to the Acreage Reporting Date, will not be considered planted for rotational purposes ONLY. The insured is responsible to provide proof of insurability.
The net effect of the change (from 2003) is that the following crops were dropped from the statement: dry peas (including lentils), safflower, and soybeans.
• Finally, the 2-year rotation surcharge for blackleg MR or R varieties has been reduced to 10% in eastern North Dakota counties (from 20%) and to 5% in western North Dakota counties (from 10%). This change was based on the insurance experience we have compiled over the last several years.
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