Drought disrupts timely completion of canola sowing in Australia
Prolonged drought in Australia’s New South Wales state has prevented farmers from completing canola planting on time. Despite this, analysts at Germany’s Oil World expect a slight expansion in the country’s oilseed area by 0.2–0.3 million hectares, mainly driven by a shift from grain crops to oilseeds.
At the same time, weather conditions remain a key risk for the upcoming harvest. Forecasts for the next 3–4 months point to below-average rainfall and above-average temperatures, which could significantly limit yield potential for both grain and oilseed crops.
Analysts estimate that Australia’s average canola yield in the 2026/27 marketing year could decline by around 15% compared to the previous season. This would potentially reduce total production to 6.9 million tonnes, down from 7.68 million tonnes a year earlier.
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