Australia’s Canola Crop Improved Before Harvest, Oil World Says

Canola production in Australia, the world’s second-biggest exporter, may be larger than expected as the harvest concludes in the country’s biggest growing region, Oil World said.

Production may be “slightly higher” than a current forecast of 3.6 million metric tons, the Hamburg-based researcher said in an e-mailed report. Private forecasts peg output in a range of 3.5 million to 3.8 million tons, it said. Australia’s government raised its outlook for the crop on Dec. 3 to 3.4 million tons, from a previous forecast of 3.3 million tons. Canola is a variety of rapeseed grown both in Australia and Canada, the world’s biggest exporter.

“Favorable weather conditions in the final yield-determining phase of the canola crop resulted in exceptionally good harvest results in Western Australia,” Oil World said. “Harvesting in that state, the by-far biggest producer this season, has been completed but is still ongoing in Victoria.”

About 75 percent to 85 percent of the country’s national harvest is complete, Oil World said. Production will still be smaller than last year’s harvest of 4.01 million tons, according to a report from the Australian Bureau of Agricultural and Resource Economics and Sciences.

Australia’s canola exports rose to a record 3.5 million tons in the 2012-13 season that ended Oct. 31, up 37 percent from a year earlier, with the European Union taking the largest share at 1.8 million tons, Oil World said. Australia’s canola oil exports also were a record last season at 128,000 tons, according to the report.

Canada’s canola output will be a record 17.96 million tons, Oil World said, citing the government’s statistics agency. That will bring the country’s total production of five major oilseeds to an all-time high of 24.08 million tons, 22 percent more than a year earlier, according to the report.

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