A crop of Pioneer PY421C canola in the Barmedman district in NSW which, like many crops in southern Australia, is well ahead of its normal growth stage due to the season’s strong and early start. Photo: Alex Goesch

AUSTRALIA exported 444,119 tonnes of canola in May, according to the latest data from the Australian Bureau of Statistics.

The figure is down 3 percent from the 458,019t exported in April, and is 33pc below the 659,182t shipped in May 2025.

In May 2026, Belgium on 118,419t was the leading destination, followed by the United Arab Emirates on 89,992t, and Japan on 66,942t.

UAE often buys a cargo of Australian canola per month, but was shipped nothing in March and April, ostensibly because of the US-Iran conflict.

Australian canola crops are generally two to four weeks ahead of their normal development stage, a result of the kind and early start to the season in Western and South Australia, Victoria, and southern New South Wales.

In its canola supply-and-demand report released June 30, Lachstock Consulting said the canola market outlook remains supportive, despite a softer tone in the short term.

“Improved seasonal conditions across Australia have lifted production prospects and eased some of the supply concerns that underpinned prices earlier in the year, leading to weaker basis and some retracement in new-crop values,” the report said.

“However, strong export demand from the EU, improving access into China and robust domestic crush demand continue to provide a solid demand base.

“Globally, structural support from US biofuel policy and tightening vegetable oil supplies remain bullish longer term, although improving Canadian and European crop conditions, larger Ukrainian production and a lack of urgency from Chinese buyers could cap upside over the coming months.

“In short, prices remain historically attractive but are likely to consolidate near term unless there is a renewed weather issue in Canada, stronger Chinese demand, or another leg higher in biofuel-driven vegetable oil markets.”

Lachstock Consulting last month lifted its estimate for Australia’s new-crop canola production to 7.15 million tonnes.

“Local carry-out remains comfortable at 1.53Mt, indicating the potential for additional export business to be completed in the back half of the year should values align, with more than half of this carryout sitting in WA.”