Canada Wheat Production Soars to 30.5 Million Tons

August 23, 2016 03:07 PM
Canada Wheat Production Soars to 30.5 Million Tons

Canada’s 2016 wheat production soared by 10.5% to a near-record 30.5 million tons, while corn and soybean output fell, according to estimates released Tuesday by the government agency Statistics Canada.

It was the second time in 25 years that Canadian farmers grew more than 30 million tons of wheat, the agency said.

About half of the 3 million ton increase in wheat production came from a 1.5 million ton increase in Durham wheat, according to analyst Brian Voth, of Prairie Farm Consulting, who spoke during an MGEX  conference call.

The estimates came as no surprise, meeting trade expectations, according to the two analysts on the call.

Soybean production fell 6.5% to 5.8 million tons, while corn for grain dropped 8.9% to 12.3 million tons.

“There was not a real shock (that corn production decreased) with soybean prices the way they were throughout the winter,” observed Voth. “It was encouraging more soybean acres and less corn because soybeans were looking at a bigger profit,” he noted.

However, unfavorably dry weather in southern Ontario, the largest soybean producing province, pushed down soybean production, he explained.

Dry weather in Ontario and Quebec also was to blame for the decline in corn production, according to the report.

Lentils production rose 36.3% to a record 3.2 million tons, the report said. Canola production fell 1.2% to 17 million tons. Barley production rose 5.8% to 8.7 million tons, and oats fell 11.9% to 3 million tons.

The estimates were based on a survey of 13,100 Canadian farms conducted from July 21 to Aug. 4.

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