Australia: Big Year Ahead for Canola
Australian farmers are expected to plant more canola in the upcoming 2014/15 season because of high prices and optimal growing conditions in the country’s key canola growing regions. Over the past three years Australian canola output has been well above historical averages at between 3.5 million tons and 4 million tons per year. China is expected to play a continuing major role in the oilseeds market in the second half of 2014 after sitting out the market in the first half. A second driver for the Australian canola market will be demand from the EU for biofuel production which is predicted to be a critical market for Australia this season. Canada’s official crop forecaster, StatsCan surprisingly cut its estimate for Canadian canola planting this season to 8.02 million hectares from 8.55 million hectares however, balancing this, is the fact that the EU canola crop is in good condition on increased planting and favorable weather conditions.
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