August 2, 2010

CWB trims wheat forecast

The Canadian Wheat Board (CWB) has further reduced its estimate for the wheat crop in Canada's agricultural heartland amid poor sowings and excessive rain.

The board pegged the wheat harvest in western Canada at 18.45 million tonnes, a reduction of 450,000 tonnes on its estimate last month.

The region, which is responsible for more than 90% of Canada's wheat production, was now on course for a fall of nearly one-quarter in wheat output, reflecting the "excess rains" that had prevented many farmers from completing sowings, and cut prospects for crop already in the ground.

About 10.5 million acres of land had gone unseeded, while the downpours had also ruined the prospects for another 2.5 million acres that did get in the ground, the board said.

Weather records showed that much of Canada's prairies, notably in Saskatchewan province, had received record rainfall over the last four months.

While most of the excess was received in the spring, heavy rains had persisted in many regions over the past month, when Saskatoon had received more than twice the average rainfall.

The 30% jump in wheat prices in Chicago and Paris in July reflects expectations that, with exports limited from Canada and especially the former Soviet Union, European and US grain will be in greater international demand.