The state of the market

Canola

News from Paul Lange, Centre State Exports:  The outlook for canola remains fairly stable and positive.

Overall supply of actual canola (not oilseeds in general, but canola specifically) is still relatively tight.  Other veggie oils such as soybean and palm oil can be substituted in some markets but many need canola.

Demand into Europe – one of our main markets – remains strong.

Our expectation is oils will be down, yields will be variable and overall production for the state will be down on last year.

We are expecting some harvest price pressure, as canola is attractive to sell off the header for early cash flow.

PIRSA’s latest estimate in September was 242,000 tonnes for South Australia compared with 372,000 tonnes last year, while the Australian Oilseeds Federation July estimate was 300,000 tonnes.

Hopefully they have both under-estimated the size of the crop and it has filled better than expected.

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