Canola prices saw steep declines across March, with markets dropping about $100 per tonne at their lowest point.
Values are down about $329/t year-on-year, while a corrective rally late in the month saw overall declines for March at $62/t.
But the price drop is coming from a very high level after Australia harvested a record crop last year.
Most experts expect another huge canola crop this year with the price expected to average $720 per tonne in 2023-24, down from $750 per tonne in 2022-23.
With a whopping four million tonnes harvested last year, Western Australia alone doubled the national crop of 2019, where 2.3m tonnes was grown.
Nationally more than seven million tonnes were stripped.
A recent Rural Bank report put the decline in canola prices largely to positive supply side news.
There have been large supplies of soybeans coming out of Brazil, as it harvests what is likely to be a record crop which has forced the overall oilseeds market down.
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A strong European Union rapeseed crop outlook thanks to decent crop conditions is also adding bearish sentiment to the market.
CBH Group protein and oilseed trading manager Dane Robertson said canola values were significantly inflated during 2022 as a result of various global market forces.
Supply was largely impacted by drought conditions in Canada during 2021 and the continued war in Ukraine, while US biodiesel mandates pushed up demand for vegetable oils.
However, in recent months, prices have been able to stabilise.
"In recent months, markets have stabilised as stocks increase off the back of boosted Australian and European harvests," Mr Robertson said.
"Access to Ukrainian seed supplies have also returned, boosting confidence in future production."
Mr Robertson said the supply outlook appeared stable for the year ahead, however lower canola prices may result in some Canadian and Australian growers switching to wheat at seeding.
Elders head agronomist Bill Moore said while canola had been especially volatile over the recent period, decreases in input prices meant he still viewed it as a profitable crop.
"The flip side of that cycle is a lot of the input prices such as fertiliser has naturally eased as well, which has made the cost production better as well," Mr Moore said.
"So it's still a very profitable crop and a very important rotation crop for many growers and across all areas of the grain belt."
