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

February 11, 2016 |

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.

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Category: Producer News

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