Canola production remains solid

Share

Share

Australian growers are expecting a solid 2014-15 Australian oilseed crop, according to the latest National Australia Bank (NAB) Agribusiness Rural Commodities Wrap.

General Manager of NAB Agribusiness, Khan Horne said reports from NAB Agribusiness bankers in key canola growing areas show substantial regional variation.

This news comes as downward movement of the AUD is providing good news for growers and it is forecast to continue on this trend.

Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) forecasts total canola production to reach 3.4 million tonnes, factoring in moderate falls in Western Australia, Victoria and South Australia, and steady production in New South Wales. Global oilseed supply is forecast to hit a record 528 million tonnes in 2014-15.

“We expect oilseed prices to weaken over the coming year, reflecting the above average forecast production in most growing regions around the world,” Mr Horne said.

The AUD has now fallen below 90 US cents, driven by a rise in volatility on global markets, an unwinding of long positions and declining metals prices.

“NAB maintains its forecast that the AUD will fall to 88 US cents in the fourth quarter this year and 85 US cents by mid-2015. The cash rate is not expected to change until the end of 2015,” he said.

The NAB Rural Commodities Index fell for the fourth straight month in August, down 3 per cent for the month, and 4.4 per cent in USD terms. The falls were led by lower lamb, dairy, cotton wheat and sugar prices. The index is now 5.6 per cent lower than August 2013 in AUD terms.

Agribusiness View provides the latest insights from NAB Agribusiness. Visit nab.com.au/agriview to sign up as well as to find the contact details for your nearest NAB Agribusiness Manager.

Important Note:
Any advice in this editorial has been prepared without taking into account your objectives, financial situation and needs. Before acting on this advice, you should consider its appropriateness to you.

About NAB Agribusiness
National Australia Bank (NAB) Agribusiness is Australia’s leading Agribusiness Bank and has been supporting Australian farmers for more than 150 years. NAB employs more than 600 agribusiness banking specialists in 110 metropolitan and regional locations Australia-wide. With their local and industry knowledge, our Agribusiness team understand the unique financial and environmental needs of farmers and businesses beyond the farm gate – whether they provide inputs into agriculture or process, distribute or market primary produce. NAB also has a specialist Agribusiness Asia Desk to help Australian farmers make the most of the rapid growth in demand for high quality produce in Asia. We deliver a flexible range of agribusiness products and services by listening to and working with our customers, to tailor the best packages and advice for their businesses. For further information please visit www.nab.com.au/agribusiness.

<ENDS>

Click here to download the September Rural Commodities Wrap (PDF)
Click here to download the high resolution version of the image of Khan Horne.

For further information:
Media

Chris Owens
M: +61 (0) 409 945 476
chris.owens@nab.com.au

Topics

SEE ALL TOPICS

Related Articles

  • Scams

Car scammers hit a roadblock

A NAB customer thought she was days away from taking home her brand new $100,000 car.  Instead, she was in the process of handing her life savings over to a criminal.

  • 28.05.2024
  • Time to read 4 min read
  • Community Grants

NAB offers Disaster Relief Grants to Bunbury residents impacted by the tornado

NAB is providing $1,000 grants and additional financial relief to customers in Bunbury, WA severely impacted by the recent tornado to assist them in the immediate aftermath.  

  • 23.05.2024
  • Time to read 1 min read
  • Climate

AGIG plots a course for renewable gas

The Australian Gas Infrastructure Group (AGIG) is delivering the nation’s largest gas decarbonisation project.

  • 23.05.2024
  • Time to read 6 min read

Quick links

National Australia Bank — NAB

Sometimes When The Unexpected Happens, We Realise What We Truly Value. Whether A Home, Farm, Business Or Your Passion, NAB Is Here To Support You.

Business Research and Insights

For more business news and analysis, visit NAB’s Business Research and Insights.