Statistics Canada Says Decrease in Wheat Production but Increase in Canola Crop This Year – SwiftCurrentOnline.com
On Friday, statistics Canada released its final principal field crops production estimates report, noting an overall decrease in wheat production this year.
Despite this decline, its possible Canada could export more wheat than the U.S. in the upcoming year.
G-3 Canada’s weather and crop specialist Bruce Burnett says U.S. exports are off to a slow start, while Canadian exports are close to normal for this time of year.
“The U.S. slow wheat exports have a lot to do with currency. The U.S. dollar is quite strong and that’s kept the lid on the future’s prices as well as the task prices that U.S. farmers are receiving. So certainly that is having an impact on the amount that they can export. In Canada we have a weaker dollar so that is allowing these exports to move a little more freely.”
Burnett says quality issues have also hindered exports for some U.S. winter crops.
Statistics Canada released its final crop production estimates report for the year, noting the second-highest canola crop on record.
Canola production rose five per cent overall this year, reaching 17 point two million tonnes.
This is a drastic change from two months ago, when stats Canada predicted national canola production would decline almost 13 per cent.
Burnett says the trade was expecting higher estimates in this report, but not to this magnitude.
He talks about how this could affect prices.
“The increased production does not necessarily mean that the prices are going to be pressured dramatically. In a lot of cases the carry in stocks this year are lower so even though the production has increased from what we were expecting, the total supplies are still quite reasonable.”
Manitoba’s canola production jumped 11 per cent this year with an average yield at 50 bushels per acre.
Source: Statistics Canada Says Decrease in Wheat Production but Increase in Canola Crop This Year – SwiftCurrentOnline.com