August 5, 2011

Canada's grain harvest for 2011-12 is forecast at 44.5 million tonnes, below last season's crop due to poor plantings, the USDA's attache said Thursday (Aug 4).

Wheat production in this crop year is forecast at 22.5 million tonnes, down 3% on year, but exports are likely to rise the same percentage, to 17 million tonnes, as grain is expected to be of better quality, the USDA said.

"Despite farmers reporting intentions to seed more area to wheat in 2011-2012, expectations were not realised due to extremely wet conditions," said the USDA. "Exports will be limited by tight supplies."

Corn exports are expected to be above average, despite a 5% fall in production due to poor plantings, although they are expected to almost halve from the historic highs reached in 2010-11, the USDA added.