Nov. 17 (Bloomberg) -- Canola production in Australia, the world’s third-largest exporter of the oilseed, is forecast unchanged from a month earlier as bigger crops in Victoria and South Australia offset a smaller crop in New South Wales.

Output may be 1.8 million metric tons in 2009-2010, the Australian Oilseeds Federation said today in an e-mailed crop report. That compares with last year’s 1.9 million ton crop and is unchanged from a month earlier.

Seeds from yellow-flowering canola plants are crushed to produce a vegetable oil that competes with soy and palm oil in food preparation. Australian grain growers are currently harvesting their winter crops including canola.

Western Australia, the biggest producing state, may harvest 825,000 tons, unchanged from the month earlier forecast. The federation raised its forecast for Victoria state by 2.74 percent to 450,000 tons. Tonnage in Victoria is expected to be a record, it said.

The federation raised its forecast for South Australia state by 11 percent and cut its estimate for New South Wales 17 percent.

For Related News and Information: Australian grain news NSE AUSTRALIA WHEAT <GO> Wheat market report TNI AGMARKET WHEAT BN <GO> Agricultural Weather Forecasts: BWS 12 <GO> Agriculture supply & demand: AGSD <GO>

Last Updated: November 16, 2009 18:23 EST