Australia expects canola rebound this year

Published 2020년 4월 17일

Tridge summary

Australia is set to significantly increase its canola planting and production for the 2020-21 season, a 31% increase from the previous year, which is expected to result in larger crops and increased competition in the European Union and China's canola markets. This could potentially impact Canada's export prospects, especially to the EU, but Canada is also exploring new export markets and there may be opportunities for increased sales to China. Canada's spring canola planting is projected to remain steady at around 21 million acres, with farmers still needing to harvest around two million acres from the previous year. The USDA anticipates strong demand for Canadian canola in the EU due to low domestic rapeseed stocks, despite COVID-19 travel restrictions potentially reducing biodiesel production.

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Original content

Canada’s canola growers should not count on another year of reduced competition from their top export competitor. Australian farmers are expected to plant and harvest a much bigger crop in 2020-21 and that will mean stiffer competition in markets like the European Union and China, say analysts. The U.S. Department of Agriculture expects growers Down Under to seed 5.8 million acres of the oilseed, a 31 percent increase over last year. Attractive prices and improved soil conditions in the main growing regions of Western Australia, New South Wales and Victoria have renewed grower interest in the crop. Land that had below average to very much below average root zone soil moisture a year ago is now rated above average to very much above average in key production areas. The USDA is forecasting an 800,000 tonne rebound in production to 3.1 million tonnes, which is slightly below the 10-year average of 3.28 million tonnes. Australia is typically the world’s second largest canola exporter ...

Source: The Western Producer