Australia Canola 2026/27: Rising operating costs pressure planting area and yields

Energy crisis The geopolitical situation in the Middle East is increasingly leaving its mark on the Australian oilseed market. Ahead of the sowing for the 2026/27 marketing year, canola growers are facing significantly increased operating costs. Nitrogen fertilizers have more than doubled in price, and delays in diesel supply are additionally pushing up production costs. The foreign service of the US Department of Agriculture (FAS) based in Canberra expects a 6.8% drop in canola acreage for 2026/27 to just under 3.5 million hectares. At the same time, the average yield per hectare is expected to fall by 13.3% – partly due to a normalization after the exceptionally high yield level of the previous season, and partly due to more conservative nitrogen fertilization during the growing season. Canola, along with wheat, is one of the most nitrogen-intensive winter crops in Australia. Despite the growers' general interest in balanced crop rotations, the current cost pressure is expected ...