May 13, 2009
Australia canola prices may benefit from lower US wheat planting
Australian canola farmers can look forward to higher prices this harvest as the USDA expects US wheat planting to fall 20 percent.
Less wheat do not necessarily mean higher prices because demand for the canola is low. But oilseeds are in high demand in Western Australia, which is good news for canola farmers, said Mae Connelly, a consultant from Farmanco.
The best news, however, is that the USDA thinks that oilseed demand is going to increase over the next year, which will support canola prices well and benefit growers in Australia, he added.
