April 2, 2012

Australia's rapeseed production up 14%

For the sixth consecutive year in 2012-13, Australia's rapeseed production could rise to a record 3.2 million tonnes, up 14% from an estimated production of 2.8 million tonnes in the current crop year ending March 31, Commonwealth bank of Australia (CBA) said Friday (Mar 30).

About 800,000 tonnes of rapeseed is used domestically each year with the balance available for exports.

While wheat remains Australia's dominant winter crop, rapeseed plantings are forecast to surge in 2012-13, fuelled by high rapeseed prices, favourable soil moisture conditions and weak cereal prices, the bank said in a review of winter crop prospects.

Over the past year, while Australian wheat prices slumped about 30%, rapeseed prices gained, rising by AUD40 (US$41.61) to AUD520 (US$541) per tonne in the last quarter, CBA said.

"The relative strength in rapeseed prices is providing a strong financial incentive for growers to maximise production this year," the bank's farm commodities analyst Luke Mathews said.

Planting of winter crops gathers pace from mid-April with the harvest usually taking place in November and December.