August 16, 2006

Canadian wheat exports expected to make strong gains this year

Canadian wheat supplies are expected to reach 10-year highs this year despite a reduction this month.

As hot and dry weather lowered production for major global suppliers in many parts of the world, Canadian exports are expected to make a strong showing this year, especially with hard spring wheat.

A return to normal quality this year would make Canadian supplies more attractive this year, as opposed to the poor quality for the last two years.

Soft wheat exports are also expected to rise due to a large crop and increased demand from Egypt and India.

However, durum exports are expected to fall as better harvests in North Africa reduce demand.

Corn production is also expected to be reduced at a time when strong demand is expected from the feed and industrial (ethanol) sectors. Corn imports are projected to grow by more than 1 million tonnes.