Australian Oilseeds Federation - Crop Report May 2006 (excerpts)

Soybeans 2005/06

Soybean estimates remain relatively unchanged from the previous month. Production has been revised down in
Queensland and northern NSW dryland regions, but this has been offset by increases on the north coast NSW. The crop is 90-95% harvested.

Hot dry conditions in parts of Queensland have seen a further reduction in yield for the Burnett and Downs regions. However, the Queensland coast crops have shown very good yields, size and quality.

Crops on the north coast of NSW performed better than forecasted and it is estimated that the region finished with production of 17,500 tonnes. The remaining regions of NSW have performed as expected, with the exception of some areas on the northern tablelands and northern NSW, which were impacted by dry conditions. Grain size and quality has generally been good.

Canola 2006/07

The good early break in Victoria and South Australia has underpinned canola estimates and planting intentions now forecast area to exceed one million hectares.

While the break has come to Victoria and SA, it continues to elude NSW. The north of the State has variable moisture conditions following late summer rains and currently less than 20% of the projected area has been sown. The projected area is forecast to fall in the central regions unless a significant rain event occurs before the end of the month. Similarly to the north just less than 20% of the projected area has been planted, with this all dry sown.

In the south, soil moisture is virtually non existent and like the central area, rain is needed before the end of the month to secure projections. A significant area has been sown dry, but the majority is yet to be planted. There are some reports of insect/pest activity in southern areas. Overall, projected area has been reduced slightly from last month to 205,000 hectares.

Very good rain has been received across Victoria which, combined with the improving price outlook, has boosted the prospects for canola. However, there is some reluctance to invest in the higher cost crops such as canola, although this is being offset by concerns over stem rust in wheat. A small area has been planted, but farmers have mostly been focused on weed control or waiting for ground to dry out. It is expected that the next week will see significant planting activity. Overall estimates have been moved up to 250,000 hectares.

Like Victoria, South Australia has seen a good start to the season. Area planted to canola is expected to be up in the lower rainfall regions compared to last year, with the mid north and south east seeing similar areas to last year. The crop is only around 20-25% sown. Estimates have been left at 150,000 hectares.

Despite some early rain, Western Australia is now looking for rain. It is estimated that the crop is around 40% sown. Estimates have been left unchanged from last month at 400,000 hectares.