Canola production in Australia is expected to rebound in 2020-21 after several years of below average output due to drought, according to a US Department of Agriculture (USDA) report on 6 April.

The Global Agricultural Information Network report said higher prices and improved soil moisture at planting were expected to result in an expansion of canola planted area. Yields were also expected to increase.

Canola output was forecast to increase by 800,000 tonnes from the previous year to 3.1M tonnes in 2020-21, according to the report.

If realised, this would still be below the 10-year average of 3.28M tonnes but would be significantly larger than the past two crops, the USDA said.

The agency noted that domestic crush was forecast to remain stable at 800,000 tonnes in 2020-21.

“While canola crush is forecast to remain steady, greater supply is expected to boost canola exports to the European Union and key Asian markets,” the report said.

Canola exports were expected to reach 2.2M tonnes in 2020-21, up 600,000 tonnes from the previous year.

“Very tight beginning stocks, however, will limit the expansion of exports,” the USDA report said.