Australian canola exports hit record

Australian canola exports in March hit a new monthly high, amid Europe's continued switch to alternative oilseed suppliers from Ukraine and Canada.

Australia shipped 857,800t of canola in March, up from 608,500t in February and 750,000t a year earlier, Australian Bureau of Statistics (ABS) data show. This was also above the previous record of 762,900t in January and a new monthly high since at least the 2012-13 marketing year.

Belgium was the primary destination of Australian crop in March, with 193,800t heading to the destination. The nation was followed by Germany, France and the Netherlands.

The US was also among the importers of Australian canola in March, which was a first in at least 10 years, as the nation primarily receives its supply from Canada.

But a weaker domestic production in Canada this year has weighed on the country's exports, prompting buyers to seek alternatives. This coincided with a bumper canola output in Australia, further aiding the nation to take market share from Canada.

The EU 27 has faced an additional oilseed supply crunch caused by disruptions to rapeseed and sunflower seed imports from Ukraine, following the start of Russian invasion on 24 February and the subsequent closure of the former's Black Sea ports. EU-bound canola exports from Australia totalled 704,500t in March, up from 442,500t in February and a new monthly high.

Australia's canola exports since the start of the marketing season in December reached 2.52mn t, up from 1.81mn t in the same period in 2020-21 and surpassing the previous record of 2.09mn t for the period from 2016-17.

Australian canola exports are projected to total 4.8mn t in 2021-22 under US Department of Agriculture (USDA) estimates, implying 2.28mn t could be shipped in April-November. Up to 1.62mn t of canola has already been earmarked for shipment in April-June, according to Australian line-up data.

Wheat

Australian wheat exports in March declined from February, reversing a trend of monthly increases since September last year.

Wheat shipments totalled 2.61mn t in March, down from 2.71mn t a month earlier but up from 2.3mn t a year earlier.

Exports to South Korea, China, Taiwan and South Africa saw the highest increase on the month but they were unable to offset declines in shipments to other destinations, including Malaysia, Bangladesh and Iraq.

China was the largest importer during the month at a combined 442,000t, followed by the Philippines at 365,000t. At the same time, 52,100t of wheat were exported to Algeria in March, which was a first since 2016-17.

Australian wheat exports since the start of the 2021-22 marketing year in October reached 13.14mn t, up from 10.68mn t at the same time a year earlier. Up to 6.62mn t has been lined up for exports in April-September, implying a further 7.74mn t could be shipped to meet the USDA annual export projection of 27.5mn t for Australia.

By Bilal Muftuoglu

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