The Rush to Crush

The expansion in soybean and canola crushing in the North American market is unprecedented. The headline behind the expansion is the advent of Low Carbon Fuel Standards (LCFS) and the resulting announced production capacity expansion in renewable diesel production in North America, which is projected to increase eightfold in just five years. However, as important are the economics of the crushing. It has been good to be a soybean and canola crusher over the past decade. Since most of this expansion is focused on development in the domestic North American market, importers of US – and even more so Canadian – oilseeds and oils may need to find a new source.