52 The Business of Ontario Agriculture Better Farming | January 2024 meal and any excess supplies should find global demand. The higher demand from the renewable diesel sector could be bullish for other crop commodities as the acreage pie is fixed in North America and we may not be able to increase supplies with higher yields. The renewable diesel capacity expansion will attract a lot more soybean in the U.S. and Eastern Canada and canola acres in Western Canada in the next four years, but what complicates the situation is the 89-year drought cycle, which is expected to peak over the next two years. Thus the required higher production of soybeans and canola – to cater to the increased crush demand – is unlikely to come from higher yields, at least not until 2026 or 2027. Crop economics are driving this increase in crush demand, but the big question is whether it will keep up if all the plants and expansion become a reality. Higher crush demand should add strength to the local soybean and canola basis near the locations where the plants are being built. BF Moe’s Market Minute MOE AGOSTINO & ABHINESH GOPAL Maurizio (“Moe”) is chief commodity strategist with Farms.com Risk Management and Abhinesh is head of commodity research. For the life of your dairy™ Contact Your BouMatic Dealer Today! NEXT GENERATION ROTARY The BouMatic Xcalibur rotary is highly regarded for its quality, comfort, and reliability. The Next Generation Rotary features improved cow comfort with a lower profile bail and better unit alignment. Redesigning of the cabinet and changes to the serviceability of the rotary will bring the operator’s comfort of ownership to a new level. With sizes from 40 to 150 stalls. To learn more about how you can milk more cows with less labor and increased performance, visit us at BouMatic.com/Xcalibur2.0 Dortman Bros. Strathroy-SalfordDunnville-Wellesley 800-265-3435 Partner Ag Services Tara-Mount Forest 519-934-2343 877-349-3276
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