Australian rapeseed prices fall to eight-month low

Price pressure has intensified in Australia’s oilseed market amid declining global futures and changing conditions in international commodity markets. In Victoria, rapeseed (canola) prices fell by 4.6% over the week to AUD 754 per ton on a Geelong–Melbourne port basis. This was the lowest level in eight months, reflecting an overall weakening of prices in the global oilseed market.

One of the main factors behind the decline in Australian rapeseed prices was the fall in European futures. French rapeseed futures lost around 6% during the previous week, adding pressure to Australian export prices. Commodity markets were also affected by a decline in global crude oil prices, which, according to analysts, fell by 12.5% following the announcement of the US midterm election results. Lower energy prices could also limit demand for edible oils from the biofuel industry.

Meanwhile, the Australian dollar fell to 68.9 US cents earlier in the week, reaching its lowest level in eight months. Currency fluctuations remain an important factor in export pricing, as they affect the competitiveness of Australian grain and oilseeds in international markets. Despite the weakening of the national currency, rapeseed prices continued to decline under pressure from unfavorable global market conditions.

Negative price trends have also been observed in the Australian wheat market. Australian Standard White (ASW) wheat prices have declined for seven consecutive weeks. Meanwhile, the premium for high-protein Hard 2 wheat over ASW has widened to AUD 39 per ton, an increase of AUD 27 since early September. As a result, the price spread between different wheat grades has expanded significantly amid changing expectations for the quality of the new harvest.

Weather conditions in Victoria are improving grain yield prospects but also creating risks of lower protein content in wheat. Cool weather and rainfall in southern regions are supporting grain filling and increasing potential production volumes. However, favorable conditions toward the end of the growing season could dilute protein levels, helping maintain high premiums for quality milling wheat.

Tags: Australia, canola, wheat, rapeseed