Australia’s June canola exports drop 40pc from May

Australia exported 446,824 tonnes of canola in June, down 40 percent from the 742,156t shipped in May, according to the latest data from the Australian Bureau of Statistics.

For the second month in a row, Japan was the major market, taking 129,443t of June-shipped canola, down marginally from the 132,795t sent in May.

Australia’s second-biggest market for June-shipped canola was Mexico on 87,950t, back after being shipped nothing in May, and 88,350t in April.

Germany on 61,861t was the third-biggest market, and only European destination, reflecting the region’s switch to use of Northern Hemisphere new crop.

In its most recent canola supply-and-demand report dated July 12, Lachstock Consulting said canola stocks in Western Australia have continued to build.

“Unlike wheat and barley, the canola harvest from last year just hasn’t been able to get out the door in the same proportions,” Lachstock said of the WA situation.

“We expect limited wheat and barley stock to be left, but there is ample canola stock to carryover in the west at the currently declining export pace.”

Lachstock said improved conditions in Canada have lifted the consultancy’s estimates for its national crop to just over 20 million tonne (Mt), with exports going to 9Mt.

“Canada is now pricing all the export demand, with around 200,000t already booked to Europe.

“This still leaves China in a bit of a hole and keeps the global canola S&D snug, but if Canada can put on another 1Mt of supply through ongoing improvements in yields, we may yet balance out this S&D that was looking unsolvably tight.”

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