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Latest Canola Forecast a mixed bag

The climatic conditions for most of the canola growing regions deteriorated during Spring, which resulted in a further reduction in harvested volume projections.

With the latest estimate at just under 1.9mln tonnes, there is expected to be more downside than upside as failing crops continue to be cut for hay. The occurrence of a number of days of very hot weather during pod fill is expected to also reduce oil content, particularly in WA.

The East Coast Crop (NSW, Vic, SA), at 1.1mln tonnes is up 25% on last year, softening some of the demand pressure from East Coast crushers, though, as with last year, seed will need to be brought across from SA, and potentially, WA. The return of China to Australian canola this year is a new demand component, and will most likely provide a price support for both east and west canola that was not present last year.

Click here for the complete November Canola Crop Forecast.

Contact: Nick Goddard

Phone: (02) 8007 7553