Canola prices have increased significantly in recent years. Relative to mid-2020 prices (approximately $450 per metric tonne), prices peaked in mid-2022 at $1100 per metric tonne. Despite a fall in May 2023 and lower prices since then, this crop is still of significant market value.
Canola crop yields and grain quality is affected by adverse environmental conditions, including heat and moisture stress, and frost. This has a flow-on effect on the price of canola in the market.
Updated daily, price in CAD/Tonne.
Canola is a crop consisting of plants with bright yellow flowers. They produce pods containing tiny seeds that contain approximately 45 percent oil. These plants are part of the Brassica family, which also includes cabbage, cauliflower, and broccoli.
The name canola originates from a composite of two words: ‘Canada’ and ‘oil’, after being bred in Canada from rapeseed cultivars in the 1970s. Canola oil is the food-grade version of traditional rapeseed oil. It is low in erucic acid, which is toxic to the heart if consumed in high doses. This differentiates it from rapeseed oil, which is naturally high in erucic acid.
Other uses for canola are for producing canola meal (typically used as animal fodder) and for biofuel production.
Australia is one of the key regions in the world for canola production. Canola is grown all along the southern parts of the country – from Western Australia, along South Australia, and into Victoria. This is known as the grainbelt. It is also grown part-way up the east coast as far as northern New South Wales.
The higher rainfall, and cooler-climate conditions of the grainbelt are ideal for growing canola. In Australia, it is best grown as a winter crop.
Every year, approximately three million metric tonnes of canola grain are produced in Australia.
For the period between 2023 and 2024, the average price of canola per tonne is projected to be $720. This is 4% less than the previous 2022-23 canola prices, which averaged $750 per tonne.
Relative to the other types of oilseed crops grown in this country, Canola production in Australia is by far the most abundant. Linseed and safflower are the other oilseeds grown.
Canola is susceptible to fungal diseases, such as sclerotinia and black leg. This can be mitigated through crop rotation within the paddocks in which it is grown.
Canola grows best in soil with acidity pH levels of between 5.0 and 8.0.
Given the small size of the canola seed, it is sown at a shallow depth. For best results, sowing takes place in April or May. The time from germination to harvesting is normally 3.5 months. Harvesting of canola crops is done by either windrowing or direct harvesting.
If you would like to find out more about various commodities traded in Australia, please take a look at these articles.
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