New Diesel Mandate Creates Opportunities for Ontario Farmers

Apr 03, 2014

By Amanda Brodhagen, Farms.com

The Ontario government announced the introduction of a new Greener Diesel Mandate on Thursday, which is receiving high praise from farm groups like Grain Farmers of Ontario (GFO).

Soybean growers stand to benefit from the new mandate, which will require a two percent blend in biodiesel, and a four percent inclusion by 2017.

GFO, the province’s largest commodity organization representing Ontario’s 28,000 corn, soybean and wheat growers predicts that the mandate will create a potential market for about 68,000 tonnes of soybeans.

The new rules went into effect April 1st.

“The creation of an Ontario Greener Diesel mandate will reduce greenhouse gas emissions generated by the transportation sector and will help build a market for made-in-Ontario soy biodiesel,” Henry Van Ankum, Chair of Grain Farmers of Ontario said in a release.

According to a government release, by 2017, the province aims to reduce greenhouse gas emissions by about 600,000 tonnes a year, which is equivalent to taking approximately 140,000 cars off the road.

The mandate was also welcomed by the Canadian Renewable Fuels Association, which called it “fantastic news” for renewable fuel producers and farmers alike.

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!