August 15, 2011

Canadian spring wheat crops increase amid dry weather

Manitoba's and Saskatchewan's spring wheat yields may improve as hot weather dried up flooded areas and created favourable crop-development conditions, the Canadian Wheat Board said.

Floods that delayed seeding of winter wheat were followed by hot weather in July that dried flooded areas and provided sun and warmth needed to promote crop growth, according to the report. Spring wheat is now more developed than earlier planted varieties, the wheat board said.

"The record-breaking heat wave that hit Manitoba and eastern parts of Saskatchewan in July, created optimal crop development conditions for most cereal grains," reported Bruce Burnett, director of weather and market analysis at the wheat board. "The areas originally washed out with flood waters have now caught up, and in some cases surpassed the early-sowed crops."

Wheat futures for December delivery on the Minneapolis Grain Exchange, where spring wheat is traded, gained US$0.02, or 0.2%, to US$8.685 a bushel, at 11:36 a.m. London time. Prices are up 4% this week.

The spring wheat harvest has started in some southern areas of the provinces and is expected to accelerate in the next two weeks, Burnett said.