Action was scheduled to take place in the 18-metre, 15-metre and open classes but mid-level cloud forced organisers to cancel competition for the day.

The 18-metre and open disciplines were officially cancelled at around 2pm local time but local officials were hoping tasks in the 15-metre tournament could be salvaged.

A final decision was then made at 3pm local time before a period of sunshine enveloped the city, which would have enabled events to be held.

"We lost another flying day today, this time to a stream of mid-level cloud that meandered over southern Australia, seemingly determined to frustrate soaring at Benalla," United States Soaring team captain John Good said.

"It was forecast to retreat to the north, but was clearly in no hurry to do so.

"At times we could see clear skies both to the south and to the north, but for hours we were stuck near the middle of this east-west band, with no sun on the ground to create usable thermals."

Today marks the third full cancellation after action was also wiped out on days one and four.

Competition in the 15m and 18m classes on day two was also abandoned following a mid-air collision involving Australia's Stephen O'Donnell and Germany's Michael Eisele.

The accident happened over Yerong Creek en-route to Narromine.

The two pilots, both of whom were forced to bail out of their aircraft and parachute to safety, were taken by helicopter to Canberra hospital, where they were treated for minor injuries.

According to The Border Mail, Eisele was treated for a fractured ankle, while O'Donnell suffered a back injury.

The event in Benalla is set to continue tomorrow.