SEED companies are experiencing strong demand for canola seed for the 2017 season on the back of exceptional yields and strong prices.
Canola plantings are expected to be up by between 6-10 per cent on this year, with hybrid varieties already sold out or committed.
Grains Industry Association of WA (GIWA) predicts WA to produce a 1.73 million tonne canola crop this season, which is up 12.2pc on 2015’s harvest.
Australian Oilseed Federation executive officer Nick Goddard said the firm prices and the lack of a positive trend on the horizon for cereals meant that canola continued to be an attractive crop for WA growers.
“It is still early but key drivers such as the South American soybean plantings and palm oil prices are closely related to canola pricing,” he said. “While they can’t all be substituted for each other there is a substitutional effect between them.”
Mr Goddard expected genetically modified (GM) canola plantings to continue to increase in WA.
“WA GM plantings will continue to grow whereas on the east coast of Australia. GM canola plantings are still dependent on expected weed pressure.
“We are expecting there to be some next year and that tends to be the trigger for GM crops in the east, whereas herbicide resistant ryegrass in WA means growers will keep GM canola in the rotation.”
Nuseed WA regional manager Andrew Suverjin said the demand was being driven by the performance of canola this season and the commodity prices compared to wheat.
“Generally canola has been the solid performer and has been the most profitable this season,” Mr Suverjin said. “We expect to see an upside swing of 10pc towards canola for 2017.” He said hybrid varieties had been the strongest with their Roundup Ready hybrid variety canola GT53 already sold out.
“Hybrids are the first to go and the one everyone is chasing, but we still have supplies of open pollinated (OP), triazine tolerant (TT) and Roundup Ready (RR) varieties available,” he said.
“OP and TT have done very well this year and we expect them to feature well next year. “While RR varieties are available growers who have not locked in seed may not get the variety they wanted.”
Pioneer Seeds WA sales and technical manager Peter Bostock said demand for canola was up across all types.
