Material Insights · Understanding the Material World

Rapeseed: Characteristics

How breeders turned an industrial oil into canola

What this tab covers The supply and physical characteristics of the commodity. Supply: current production, inventories and stocks, capacity utilisation, geographic and producer concentration, how fast supply responds to price, the project pipeline and capital spending, and logistics and export flows. Material: the physical and chemical properties that set its grade, price and end uses (for example purity and conductivity for metals, API gravity, sulfur and energy content for fuels, moisture, protein and fibre quality for crops).

Supply volume characteristics

CharacteristicFigureWhat it meansSource
Current production volumeabout 87.9 Mt (FAOSTAT 2024); 96.0 Mt in 2025/26 and 99.6 Mt forecast for 2026/27Canada (canola), the EU, China, India (mustard) and Australia lead. India grew 13.77 Mt of rapeseed-mustard in 2025-26 (3rd advance estimate).FAOSTAT 2024; USDA PSD; Ministry of Agriculture
Inventory and stock levelsworld ending stocks 11.6 Mt forecast for 2026/27, 11.8% of use, about 43 daysCanada and the EU hold about 2.1-2.2 Mt each; China about 3.9 Mt. India holds about 0.5 Mt and no strategic reserve; NAFED buys mustard at MSP (Rs 6,200/quintal in RMS 2026-27) when mandi prices fall.USDA PSD; Government of India MSP
Capacity utilisationnot published as a world seriesAbout 96% of rapeseed use is crushed (90.1 Mt of 94.1 Mt in 2025/26). India's crush was 10.75 Mt in 2025/26, split between solvent plants and thousands of small expellers (kolhus); no utilisation series is published.USDA PSD
Geographic and producer concentrationtop country Canada 21.9%, top-3 (Canada, China, India) 56.2%, HHI 1,239 (2024); exports: Canada 33.3%, top-3 70.6% of valueChina (27.5%) and Germany (22.5%) take half of import value. Richardson, Viterra (Bunge), Cargill, ADM and LDC dominate Canadian handling and crushing.FAOSTAT 2024; UN Comtrade 2024
Supply elasticityshort-run moderate: annual crop; winter rapeseed must be sown a year before harvestCanadian and Australian farmers switch area between canola, wheat and barley each season. EU winter rapeseed is committed in August-September for harvest the next summer, so it responds with a lag.USDA; industry practice
Project pipeline and CapExworld output forecast up 3.7% to 99.6 Mt in 2026/27; crush expansions in Canada for renewable dieselIndia's mustard crop rose from 12.67 Mt (2024-25) to 13.77 Mt (2025-26) under the National Mission on Edible Oils. Plant-level crush capacity figures are not in the sources used.USDA PSD; Ministry of Agriculture
Logistics and export flowsabout 19.4 Mt of seed exported in 2025/26, about 20% of outputRoutes: Canadian prairies by rail to Vancouver for China and Japan; Australia from Western Australia and NSW to the EU and Asia; Ukraine through Black Sea ports. Chokepoints: Canadian rail capacity, Chinese trade actions on Canadian canola, war risk in the Black Sea.USDA PSD; UN Comtrade 2024

Material characteristics Agricultural / soft commodity

Rapeseed is crushed for oil (about 40% of seed weight) and protein meal. Canola is rapeseed bred for low erucic acid in the oil and low glucosinolates in the meal, which makes the oil fit for food and the meal fit for feed. Indian mustard keeps high erucic acid and pungency, prized in kachi ghani oil. Moisture and green seed set the grade.

PropertyValue / specificationWhy it mattersSource
Erucic acid (oil)canola: less than 2% of fatty acids; Indian mustard about 40-50%Defines canola; high erucic oil is restricted in some food marketsCanola Council of Canada; Codex Standard 210-1999 (indicative)
Glucosinolates (meal)canola: less than 30 micromoles per gram of mealLow levels let the meal be fed to pigs and poultryCanola Council of Canada
Oil contentabout 42-45% for canola; about 38% oil recovery in India's crushSets crush marginUSDA PSD extraction rates (indicative)
Moistureat most 10.0% to be graded dry in CanadaDamp seed heats and spoils fast because of its high oilCanadian Grain Commission
Distinctly green seedat most 2.0% for Canola No. 1Green seed gives dark, chlorophyll-rich oil that is costly to bleachCanadian Grain Commission
Pungency (allyl isothiocyanate)kept in Indian kachi ghani mustard oilIndian consumers pay for pungent cold-pressed oilBIS / FSSAI mustard oil standards (indicative)