STRONG prices for canola have meant farmers have flocked to the crop, with this year's seeding forecast to be up by 245,000 hectares on the 2010-11 season.
Prices are hovering at about $580 a tonne port, with a slight premium in South Australia, which does not produce genetically modified canola.
The international focus is on the European crop.
Emerald Group's general manager of trading Chris Kochanski said dry conditions were impacting on canola crops in France, Germany and Britain in particular.
Along with this, there had been a delay in the seeding of the Canadian crop because of excess moisture, although this has cleared up in the past fortnight, allowing good seedings.
"We've seen prices come up about $20/t in the past month, but generally it has been relatively stable," Mr Kochanski said.
Australian farmers had not yet come to the market looking to negotiate forward contracts.
"I think we are just a little bit below that crucial pricing point, if we got to $600/t port, we would see more interest," he said.
SA could be the beneficiary if there were shortages in Europe.
"The Europeans don't buy GM canola, so South Australia's status as GM-free is leading to a small premium to east coast non-GM prices," he said.
Cargill canola trader Katie Colvin said the market was watching weather on either side of the Atlantic.
"A few concerns have emerged in Europe, however most of the crop would still benefit from rain in the coming weeks," she said.
There had been a small amount forward-contracted when prices reached $600/t port, but most growers were waiting on crop emergence before committing too much.
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