Audio Script:

Hi I'm Alex Byrne, here to give you a quick update on canola markets.

An early autumn break in NSW, WA and parts of Victoria have allowed increased area of canola to be grown this season.

The ABARE 21/22 forecasted area in Australia is up approximately 600,000 hectares. This is the largest crop of canola ever grown in Australia. ABARE is forecasting a production of 4.2 million tonnes which is extremely conservative given the seasonal forecast outlook.

Currently we are seeing extreme volatility in oilseeds markets, especially in canola. Trading ranges over the last 2 days for instance have been $40-50 per tonne, per day on the canola exchanges.

The major drivers of the market at the moment are the weather in Canada and the U.S.

There is currently an extreme heatwave in the major canola growing areas of Canada. Changes to temperature and rainfall forecasts will impact crop yields and therefore price.

Trend line yields in Canadian canola and US soybeans need to be maintained in order to satisfy demand. This is especially true after the USDA released lower than expected planted soybean area for America last night.

Thanks for watching, please be sure to tune in next month for the next update.