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Australia’s Canola Crop Beats Expectations

Despite frost in Western Australia and excessive rain in the country’s eastern regions, Australia is set to harvest 3.5 million tons of canola from planted acreage in line with last year’s acreage.

Although the Australian Oilseeds Federation expected a good to average crop, the extended cool weather at the end of the growing season has proven to be highly favorable for the crop.

Western Australia, which is forecast to harvest 1.8 million tons this year, has shipped its first loads of canola which appears to have very high oil content and good fatty acid levels.

Disruptions to the Canadian harvest in the form of snow in some regions and forecasts for a poor European harvest along with strong demand in China and the EU have kept canola prices high compared to other cereals.

Meanwhile, in Europe, which is generally a non-GMO market, buyers faced with a tight supply scenario are opting for genetically modified canola from Australia and Canada due to price discounts on the biotech crop.

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