Canadian Canola exports to Mexico take a hit

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Canadian canola exports to Mexico have significantly declined, dropping 65% to 279,900 tonnes in the first seven months of the 2023-24 season, compared to 801,100 tonnes during the same period last year. Declines in other major markets like China and Japan are less severe, at 22% and 20% respectively. Analyst Bruce Burnett attributes Canada’s loss of market share in Mexico primarily to competitive pricing by Australia, which harvested a record canola crop in the 2022-23 season. Australia’s lower export prices have allowed it to penetrate price-sensitive markets such as Mexico more effectively this year. The US Department of Agriculture forecasts a decrease in Mexico’s canola imports but anticipates a recovery next year. Despite the competition, Canada is expected to remain a major supplier due to favourable pricing and logistical advantages, although Australia is likely to increase its market share due to its competitive pricing.

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