December 19, 2012


Australia to see decline in canola planting for 2013


Australia's canola plantings are expected to decline by up to 10% in 2013, and the area planted to the oilseed is expected to be 2-2.1 million hectares, significantly less than the 2.24 million hectares sown this season.


Rabobank said canola plantings in Australia had increased by about 44% over the past 10 years, signifying a significant growth in the oilseed sector.


Increases of about 13% a year had been recorded since 2007, the report said.


Australia harvested a record 3.2 million tonnes of crop last year.


This year's Australian harvest is expected to be the second largest crop on record, estimated by Rabobank at 2.7 million tonnes.


Rabobank senior grains and oilseeds analyst, Graydon Chong, said a number of factors, including dry weather and low levels of sub-soil moisture, would affect the coming canola season.


Price competitiveness with more traditional grains are also expecting to contribute to the short-term downturn.


Australian Oilseeds Federation executive director, Nick Goddard, said high demand for canola and other oilseeds were expected to result in more positive long-term figures.


The Rabobank report suggested the emerging market for edible oilseeds, especially in developing countries, and the growing demand for canola in the biofuel industry would lead to much higher levels of canola plantings and harvests in the long term.

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