August 25, 2008

 

Canada's 2008 oilseed output forecast to hit record high
   
 

Canadian farmers in the Prairie, Ontario and Quebec, are expecting new record high for oilseed and soy production, reaching 10.4 million tonnes and 3.2 million tonnes respectively, in 2008, according to Statistics Canada.

 

The bullish estimates came despite concerns of excessive rain in some areas. Actual production will largely depend on the weather in the remainder of the 2008 growing season, said Statistics Canada.

 

The increased oilseed forecast was due to an expected average yield of 29.3 bushels per acre and a projected harvest area of 15.6 million acres. Statistics Canada said biodiesel demand, high prices at planting time and increased crushing capacity are among the factors that are driving the rise in oilseed planting.

 

Quebec farmers expect soy production to jump 33.5 percent to 630,000 tonnes due to a record planting area of 573,000 acres. In Ontario, soy acreage may have decreased by more than 100,000 acres but an anticipated yield of 39.5 bushels per acre is expected to result in a 12.5 percent output growth over last year to total 2.3 million tonnes.

 

Farmers prefer to plant soy in 2008 due to its lower cost of production, Statistics Canada said.

 

Corn production is expected to drop 15.1 percent to 9.9 million tonnes - Ontario and Quebec, which accounts for 95 percent of corn production, are expected to see reductions in harvested area. In Ontario, favourable conditions pushed farmers into rotating winter wheat into much of the land used to grow corn and soy, while in Quebec more than 100,000 acres of land was rotated out of corn and into soy.

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