Western Australian has grown its largest crop on record

Over 20.5 millon metric tonnes (Mmt) of crops in WA, have been delivered into the CBH system surpassing the 2022 record, with the vast majority of the crop has been received as ASW1.   

Exporters are finding good homes for WA origin wheat, with Southeast Asian buyers stepping up to buy ASW (as feed wheat) at parity to corn prices.  China too, is back to buy ASW type wheat and is believed to be in the market for around 8Mmt (similar to last year) - with some of the Chinese business expected to be sourced from SA. 

The canola harvest is proving to be very strong.  

According to Mecardo, global consumption of canola is anticipated to amount to 79.2Mmt, albeit a 5.1Mmt increase on the previous season, so there will be an increase in surplus for the first time in three years.  

“Despite a particularly challenging canola harvests on the East Coast, this year's Australian canola crop is expected to deliver another record, potentially exceeding 7.5Mmt.” 

“An exceptional start in WA and SA, combined with solid potential returns, saw a significant increase in the area of 7% and 25% respectively.  Western Australia alone will deliver what would have once been regarded as a strong national crop of over 4.2Mmt.” 

Keep an eye out next week for Mecardo’s quarterly report. To read more of what's happening in the markets check out the website HERE.