Canadian farmers will harvest 20 percent less canola and 10 percent less wheat, not including durum, in the 2009-10 crop year, Canada's Agriculture Department said in its revised outlook Thursday. Agriculture Canada adjusted production numbers to the April 24 planting intentions report by Statistics Canada, which predicted more spring wheat and barley acres, but smaller acreage of canola and durum wheat.
Agriculture Canada expects total production of grains and oilseeds to decline 10 percent to 65.6 million tonnes. It forecasts supply to decline only 3 percent due to larger carry-in stocks. Production of canola, a variant of rapeseed, will drop sharply to 10.2 million tonnes because of a 7 percent projected decline in seeded acres and lower yields, the outlook said.
Exports of the oilseed will drop because of smaller volumes, but domestic crushing should increase with the opening of two new canola plants this year, according to Ag Canada. Tight supplies should push up prices 5 percent. Production of durum wheat, used in pasta, is expected to fall by 8 percent to 5.1 million tonnes because of a 5 percent projected drop in seeded acres, but high carry-in will create an 11 percent increase in supply, the outlook said.
Wheat, not including durum, will show a 10 percent production decrease to 20.8 million tonnes because of lower yields and a drop in the winter wheat seeded area. Planting of spring wheat, milled to make flour, is expected to rise 6 percent. Ag Canada also said production will drop for barley (10 pct)and oats (20 pct). Soyabeans are expected to see slightly higher production based on record plantings but limited by lower yields. Flaxseed production will also rise marginally, Ag Canada said.
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