May 7, 2009
US soy crop sharp decline seen beneficial to Australia canola
A sharp decline in the South American soy crop could be good news for Australian canola growers.
As the harvest wraps up in Argentina and Brazil, yields are down on early predictions. Farmers there have struggled to afford fertiliser due to recession and a long dry spell.
Global demand, however, has pushed the price of soy up, making the cheaper but higher quality canola a more attractive option for buyers.
Claire Sullivan, from GrainPool in Western Australia, said last year's record canola crop pushed prices down relative to soy but there are signs buyers are changing tack, adding that it is already reflected in domestic cash prices available to growers at the moment.
Sullivan also said the old season crop has gone up about US$20 per tonne in the past month, and the new season crop is up about US$35 per tonne in the last month.
