December 10, 2009

Cargill gets the OK from FDA

The US Food and Drug Administration (FDA) has lifted canola meal import restrictions on Cargill's crushing plant at Clavet, Saskatchewan.

The Cargill plant, one of the largest crushing canola in North America, was among five that FDA had placed in import-alert status following detection of salmonella in canola meal shipments to the US.

The FDA still lists restrictions on other Canadian plants including three Bunge canola plants and a Viterra's plant.

ICE Winnipeg canola futures closed higher earlier this week despite losses in US soy futures, with traders attributing part of the increase to the lifting of the import restrictions.

Canola is a key cash crop on the Canadian Prairies, and canola meal is a lucrative byproduct.

The canola crop in Saskatchewan was worth C$2 billion (US$1.9 billion) last year, while Alberta's crop was worth about half of that.