Farmers welcome reprieve for canola prices

Canola prices have jumped above $700 a tonne this week, representing an increase of $30 in a week, giving growers a glimmer of hope.

Canola prices have jumped above $700 a tonne this week, representing an increase of $30 in a week, giving growers a glimmer of hope.

Growers have received a double boon – prices rebounding and a timely downpour in Victoria’s growing regions enhancing the prospects for winter crops.

Farmers are attributing the price rise to the indications that planting area is likely to be back and also the demand for the crop on global markets.

The price rise, combined with recent rain has helped to rejuvenate some optimism among farmers too.

In the past seven days, the Bureau of Meteorology reported that 25mm fell at Cobram, 29mm at Rochester, 24mm at Bendigo, 15mm at Shepparton and 15mm at Yarrawonga. In the Wimmera, falls were less, with Rupanyup and St Arnaud both receiving 5mm and Stawell, 1mm.

David and John Ferrier with dog Lotty. Picture: Zoe Phillips

Birchip Cropping Group chairman John Ferrier said it was good news to see canola prices improve, but conditions remained dry in his area.

“We didn’t get the rain; there were isolated falls in the areas around here,” he said.

In the past week, he said the rainfall event that had bolstered some parts of Victoria ranged from zero to 6mm for Mallee farmers.

He said subsoil moisture was still good at this stage and farmers would continue with dry sowing and hope for a break.

He said despite seeing the canola price rise to $702 a tonne at the port in Victoria, he wouldn’t lock in forward contracts just yet.

It was a case of waiting and seeing what the season brings.

Mr Ferrier will grow vetch, barley, lentils, canola and wheat in his winter cropping program.

The turnaround in canola prices comes after values dropped below $600 a tonne back in March, and there was talk that some growers might leave the crop out of traditional winter rotations.

The $600 a tonne price was a stark contrast to the highs of $1000 a tonne for canola recorded 18 months ago on the back of a world shortage of the crop at the time.

The Australian Oilseeds Federation has estimated that canola planting could be back 10 per cent in Victoria this season. In 2023-24, growers in Victoria planted 550,000ha of the crop.

The latest Grain Industry Association of Western Australia report indicates that planting will be down in that state due to dry conditions. Growers are estimated to sow 1,700,00ha this season. Last year, the crop in the west was 1,845,000ha.