![Australian canola producers are looking forward to good prices as they head into harvest. Australian canola producers are looking forward to good prices as they head into harvest.](/images/transform/v1/crop/frm/5Q2j7ezUfQBfUJsaqK3gfB/feb68256-6c77-4a4e-bab5-b170ff8a9360.JPG/r0_267_5232_3220_w1200_h678_fmax.jpg)
A STRING of factors throughout the oilseeds complex is providing strength to Australian canola prices as farmers head into harvest.
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Australian cash prices for canola are currently at around $530 a tonne delivered port.
This price is likely to be supported by a range of factors including a late finish to the Canadian harvest season, which could see crop abandoned and will slow the logistics program in moving the seed to port, issues with the Argentine soybean crop and palm oil prices hitting four year highs.
Hannah Janson, senior analyst with ProFarmer, said the Canadian situation was the most likely to impact Australian prices as it was a direct influence on canola prices.
“We talk about oilseeds as a whole but there is not direct correlation between the various crops, facilities are set up to crush a particular product,” she said.
“In the case of canola, Canada is the important one to watch because it is a direct competitor with Australian canola.
“Over the past couple of years the majority of Australian canola has gone into Europe, but if Canada cannot supply China there may be opportunities for Australia to get into that market once again.”
There has been further rain over the Canadian prairies as farmers look to race the clock harvesting remaining crop before winter sets in.
Ms Janson said while not directly having an impact on pricing, the news in South America was broadly supportive of canola values.
Forecasters expect serious dents to the Argentine soybean plant due to excessive rain at planting time. Official forecasts are for the lowest Argentine soybean plant in five years.
Argentinean government measures, including an end to corn and wheat export taxes, are also having an impact in lowering soybean plantings.
Closer to home, the news out of south-east Asia is also pushing oilseed values higher.
In Malaysia, palm oil values soared to four year highs on the back of dryness concerns surrounding the crop.
It is all good news for Australian canola producers potentially on the cusp of a big production year.
Early reports from areas such as the Victorian Mallee suggest heavy crops with good oil content.
Key canola producing regions are likely to start harvest before the end of the month.