August 30, 2022

Farmers in Canada to harvest more wheat than projected

The Canadian government's first official harvest estimates showed that farmers in the country will harvest more wheat than projected, and the biggest canola crop in three years, Reuters reported.

Canada's crop production is rebounding strongly after a severe drought devastated last year's harvest, at the same time as the world is dealing with stranded grain and sunflower oil stocks in Ukraine due to war.

Canada is the world's third-largest exporter of canola and the world's largest exporter of wheat.

All-wheat production was estimated by Statistics Canada (StatsCan) to be 34.6 million tonnes, which is higher than the industry's average estimate of 34 million and an increase of 55% over last year. It would be Canada's second-largest wheat harvest in the previous nine years.

The largest component of the all-wheat category, spring wheat, was estimated to be produced at 25.6 million tonnes, slightly more than the average expectation, according to StatsCan.

Jerry Klassen, an analyst and trader at Resilient Capital, said the estimates for the price of spring wheat are neutral to slightly bearish and bearish for the price of durum.

The estimates were created by Statistics Canada using weather data up to July 31 and satellite images. After that time, Klassen predicted that wheat and canola yields would likely increase.

According to projections, farmers will harvest 19.5 million tonnes of canola, an increase of 42% from the previous year.

-      Reuters