Australian farmers are anticipated to expand their wheat and barley planting this year due to heightened Chinese demand and favorable wet weather conditions on the country’s east coast. In contrast, canola sowing is expected to decrease amid reduced profit margins and dry conditions in Western Australia.
Australia, a significant global exporter of wheat, barley, and canola, plays a crucial role in influencing global supplies and prices of these commodities. Analysts project a rise in wheat and barley production by several million metric tons for the 2024/25 season, while canola output is forecasted to decline by approximately a million tons.
The eastern region of Australia, benefiting from ample rainfall, is expected to witness increased planting, with wheat area projected to grow by 1%-3% and barley area by 3%-15%. Conversely, canola area may shrink by 4%-20% compared to the previous season due to dryness in Western Australia, which poses challenges for canola cultivation given its earlier planting schedule and lower profit margins relative to wheat and barley.
Continued dry conditions in Western Australia could lead to reductions in wheat and barley planting as well, according to analysts.