Western Australian canola prices show promise

Canola prices are trending at higher levels. We chat to farmers about what it means for their winter sowing programs.

Canola prices have jumped in value this week in a move that will make the oilseed a more popular crop in winter rotations this year.

In Western Australia, prices have been quoted by Cargill Australia’s Kwinanna site at $802 a tonne, but growers in that state say they will wait for an autumn break before making major sowing decisions. Cargill is quoting canola at Geelong at $765.

Ben Langtry of Marrarvale Pastoral Company at Marrar. Picture: Nikki Reynolds

Southern NSW grains and cropping farmer Ben Langtry of Marrar said the price was certainly a factor, but soil moisture levels were just as important when factoring in canola.

“We have had a bit of rain, up to 90mm in February, and that gave us confidence to stick with a normal program,” he said.

Before that, he was on the verge of reducing the amount of canola sown.

“If we didn’t have subsoil moisture, it makes it a lot riskier, and it is an expensive crop to grow,” he said.

“I noticed the better prices this week, and that also gives confidence, but it is a long way away until we can take the price, There are a lot of factors that can change,” he said.

Mr Langtry will sow wheat, barley, canola and lupins this year, and if southern NSW benefits from rain in the aftermath of Tropical Cyclone Alfred, there might be an opportunity to sow some early grazing crops.

“If we get this rain, we could sow a few paddocks next week,” he said.

Episode 3 analyst Andrew Whitelaw said prices for genetically modified canola in Western Australia have been at the highest levels since 2015.

The higher prices were due to the fact Europe has the smallest crop since 2010, and there were also global concerns about tariffs from the US on Canada.

Episode 3 quoted the canola production in Europe at 17.2mmt, down from 19.9mmt in 2023. In 2024, production was the third lowest since 2010. At the same time, domestic consumption was the sixth highest.

Grain Producers Australia president Barry Large, of Miling, Western Australia. Picture: Supplied

Western Australian grower and Grain Producers Australia chairman Barry Large of Miling said it was likely 25 to 30 per cent of farmers would grow canola anyway, regardless of the price.

“The next 30 per cent (of growers) will watch for an autumn break,” he said.

However, Mr Large said the current price levels were likely to give growers confidence to grow it.

He said there was a time for an autumn break right up until the second week of May.