February 24, 2010

Canada wheat output to drop 9%

Huge global supplies and lower prices will lower Canadian wheat production by 9% this year as farmers look to other crops.

Canada will harvest 24 million tonnes of wheat in 2010, down from 26.515 million tonnes last year, according to the Canadian Wheat Board.

That would be its smallest harvest in three years, but in line with the 10-year average.
 

Global wheat production is forecast to fall 3.7% to 651 million tonnes in 2010, but the estimate is up seven million tonnes or 1% from the Wheat Board's last estimate on January 15.

The FAO had also predicted a 5% decline in global wheat production in 2010, while the International Grain Council last month forecast world wheat output to fall 3% to 653 million tonnes.
 

With no major weather-related threats to current world wheat crops, more farmers in Canada are likely to choose the better returns offered by oilseed crops.