Source: Oleoscope (Russia)
According to Australian Bureau of Statistics data released by Grain Central, Australia exported 375,480 tons of canola in August. This figure is down slightly from the 386,000 tons exported in July, but is still higher than the 358,000 tons exported in August last year. The data highlights Australia’s strong performance in canola exports, which ended a record year on September 30, 2023 with total shipments of 6 million tons.
Japan was the top destination for Australian canola in August 2024, importing 120,129 tons. The United Arab Emirates (UAE) ranked second with 90,732 tons and Pakistan imported 65,038 tons, making these three countries the largest markets for Australian canola shipments in the month.
A major development impacting Australian canola exports was the recent announcement of the Comprehensive Economic Partnership Agreement (CEPA) between Australia and the UAE. This agreement removes the 5 percent tariff on Australian canola exports to the UAE. The removal of this tariff is expected to strengthen Australia’s competitiveness in the UAE market.
The announcement underlines that the UAE is a major player in the global rapeseed market due to its price sensitivity. The country typically imports around 800,000 tons of canola per year, a figure that could rise if China imposes a ban on Canadian canola imports, which could increase demand for Australian canola. In the meantime, the UAE is expected to process canola into oil and meal, which it will then re-export to China, a major buyer in the region.
In Western Australia, the canola harvest has already begun. The region is expected to produce 2.2 million tons of canola this season, 300,000 tons less than in 2023-2024, according to the Grain Industry Association of Western Australia (GIWA) in its September forecast. Despite this decline, Western Australia remains a major contributor to the country’s total canola production, underlining its importance to the national export market.