April 14, 2012

Canada's wheat, rapeseed acres to rise 12% in 2012

The grain and oilseed growers of Canada may increase seeding by 12% this year on favourable weather, Agriculture and Agri-Food Canada said.

Total planted area may rise to 26.345 million hectares (65.1 million acres), up from 23.524 million a year earlier, the government agency said in an e-mailed statement. Production of grains and oilseed may rise 7.4% to 70.72 million tonnes, boosting exports 1.4% to 33.568 million and increasing reserve inventories before the 2013 harvests 11%, the agency said.

Canadian farmers may boost wheat planting by 11% this year to 9.68 million hectares from 8.737 million in 2011. Production may rise to 26.1 million tonnes, from 25.261 million harvested last year. Canada is the fourth-largest exporter, trailing the US, Australia and Russia.

Wheat futures have declined 9.5% in the past year on the Minneapolis Grain Exchange as world inventories are forecast to rise to the highest since 2001 before this year's northern hemisphere harvest.

Rapeseed plantings are expected to increase 8.1% from last year to a record 8.25 million hectares, Agri-Food Canada said. Prices are up 11% this year on the ICE Futures Canada exchange in Winnipeg.

The area seeded with barley will rise 22% to 3.2 million hectares, from 2.619 million a year ago, the agency said. Oat planting may jump 27% to 1.6 million hectares.