Australia 2009-10 canola output to fall 10 percent to 1.69 million tonnes

Australia's new crop canola production will fall 10 percent to 1.69 million tonnes from an actual 1.88 million tonnes in the last crop year ended March 31, 2009, industry lobby Australian Oilseeds Federation forecast late Tuesday (May 19).

"While higher prices have improved the chances of canola being included in the (crop) rotation generally across the country, lack of confidence in futures rains is dampening grower confidence," it said in a monthly Crop Report.

Western Australia accounted for 60 percent of national output in the last crop year but with below average rainfall this year across most growing areas, there has been little planting to date, according to the report.

Elsewhere, the season in South Australia got off to a good start with planting under way, while Victoria received reasonable rainfall late in April, but with little follow-up falls since, farmer confidence is softening, it said.

New South Wales growers have had a good start to the season, particularly in the north, it added.

After annual domestic canola demand - in the 500,000-600,000 tonnes range - is met, the remaining national output is available for export, potentially making Australia a major global supplier.