WINNIPEG: Canadian farmers seeded the most wheat in 22 years, slightly more than expected, and also planted more canola than the industry was forecasting, a government report showed on Wednesday.

Canada is the world’s fourth-largest wheat exporter and the biggest shipper of canola, which mainly produces vegetable oil.

The country’s wheat production is especially important this year with heavy rain and drought hitting wheat crops in China and the United States respectively.

Parts of the Canadian Prairies are also dry, raising concerns about yields.

Statistics Canada estimated plantings of all wheat - including winter wheat sown last year for harvesting this summer - at 26.9 million acres, above average industry expectation of 26.5 million.

Wheat sowings are up nearly 7% from a year ago and are the most since 2001. It is the fourth-largest wheat area on record when winter wheat is included, which StatsCan has tracked since 1997.

Canadian farmers planted more wheat due to high prices and because it withstands dryness relatively well, but yields of both wheat and canola may turn out slightly below normal, said Bruce Burnett, director of markets and weather at MarketsFarm.

“I’m very concerned about the dryness on the Prairies,” Burnett said. “We need rains virtually immediately and it doesn’t look like we’re getting that into the first 10 days of July.”

Crops in southern Alberta, western Saskatchewan and southwestern Manitoba look particularly stressed, Burnett said.

Farmers planted 22.1 million acres of canola, higher than StatsCan’s April estimate of 21.6 million and 3% more than last year. The average trade estimate was 21.8 million acres.

StatsCan’s surprisingly high canola estimate may weigh on prices, said Lawrence Klusa, president of advisory Seges Markets.

“The market has been in a downward trend and the higher estimate for canola isn’t going to help,” Klusa said.

ICE Canada November canola futures dipped 1.3%. Farmers reduced plantings of oats, lentils and peas.