Global canola pricing

Global canola pricing

Canola has been a star performer in recent years, driving farming profit in the grain sector. But how do we compare against some of our largest competitors and our main destination? In this analysis, we will look at French, Canadian, Australian, and Ukrainian pricing levels.

From 2016 to 2020, Australian canola prices generally sat at the bottom of the pack and held a position as discounted against other origins. In comparison to Canada, during that 60-month period, Canada outpriced Australia in 35 months.

During the 2021–2022 global price spike, Australia’s prices surged sharply, peaking around A$1275 in June 2022. This peak was caused by drought in Canada, tight stocks in France, and the Ukraine situation. During this time, Australian values returned to a significant discount due to our strong production and strong local premiums from other origins.

Most of our canola will be destined for Europe, and if they have a poor year, their local premium will increase, but our demand will also increase. The threat of tariffs on Canadian canola seems to be largely over, for now, which has helped Canadian prices rally.

In the past couple of years, Australian values have held a strong premium, but in recent months, they have dropped back into a discount.