Prices for Australian canola oil to fall by 8% the 2020-2021 season

The Australian canola price is forecasted to fall by around 8% to USD $563 per tonne in 2020–21. World vegetable oil demand and prices bounced back after a sharp contraction at the start of the pandemic. However, prices are expected to ease in 2021 due to increasing supply offsetting a recovery in demand. World canola production is expected to remain unchanged in 2020–21 at around 68 million tonnes. European canola production is forecast to fall slightly in 2020–21 due to drought and low canola seed production yield. Canadian canola production is expected to increase slightly but remains low compared with previous years due to an ongoing trade dispute with China impacting planting decisions.