Refined, blended, and deodorized (RBD) Los Angles canola oil prices continued to decline but held above 60 cents per pound this week. Prices have been lingering near three-year lows amid a drop in the basis level and weakness in soybean oil futures in Chicago. 

Amid increasing U.S. vegetable oil demand and delayed canola seed planting in Canada, LA canola oil basis climbed more than five cents by the end of June 2023 to 21 cents above SBO futures. In step with a rally in soybean oil futures, LA canola oil prices peaked in July 2023, topping 93 cents per pound that month. 

In early 2023, consumption for canola oil advanced on the year after the U.S. EPA approved the edible oil as an eligible pathway to generate Renewable Identification Numbers (RINs) in the production of renewable diesel. However, the growth in consumption from the renewable diesel (RD) sector has been slightly slower than expected.

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