Significant Drop in Canola Exports as Major Markets Show Varied Demand
In June 2024, Australia saw a notable decline in canola exports, with the total shipment dropping to 446,824 tonnes. This represents a 40 percent decrease from the 742,156 tonnes exported in May, according to the latest figures from the Australian Bureau of Statistics.
Japan maintained its position as the largest market for Australian canola, importing 129,443 tonnes in June. This figure is slightly down from the 132,795 tonnes shipped to Japan in May. Mexico emerged as the second-largest market with 87,950 tonnes of canola, recovering from zero shipments in May and closely following the 88,350 tonnes exported in April. Germany was the third-largest market, receiving 61,861 tonnes of Australian canola. This reduction reflects Europe’s transition to new crop supplies from the Northern Hemisphere.
The latest supply-and-demand report by Lachstock Consulting, dated July 12, highlights that canola stocks in Western Australia are continuing to accumulate. The report notes that, unlike wheat and barley, last year’s canola harvest has not been cleared from stock at the same pace. Western Australia currently has ample canola stock available, even though the export pace has been declining.
Lachstock Consulting also reported improved conditions in Canada, leading to an upward revision of the country’s canola crop estimate to just over 20 million tonnes. Canada is anticipated to export around 9 million tonnes, with approximately 200,000 tonnes already booked for European markets. This has left China with a shortfall, contributing to a tight global canola supply and demand situation. However, should Canada increase its yield by another 1 million tonnes, the global balance might improve.
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