Drought in Australia could cut canola production

The volume of canola production in Australia may decline amid a prolonged drought that threatens oilseed crops, Reuters reports. Many farmers in the country are already switching to alternative crops – cereals, which are sown later than canola.

As StoneX analysts note, the oilseed crop in Western and South Australia may be the lowest in recent years – 4.5 million tons (10 million tons annually on average) and 4 million tons (5.5 million tons).

At the same time, the sown area under wheat may increase by 1% to 13.5 million hectares and its production by 11% to 29.3 million tons. Barley sowing in Australia this year will expand by 4% to 4.5 million hectares, and production of the grain will increase by 7% to 11.2 million tons.

Tags: drought, rapeseed, Australia