Canada’s wheat crop is estimated at 32.0 MMT by Statistics Canada, up from the 29.8 MMT forecast in September and higher than the 31.1 MMT traders expected. StatsCan raised its Canadian canola crop estimate to 18.3 MMT, which was right in line with pre-report expectations. While the estimates are higher than previously forecast, Canadian production declined 6.9% from year-ago for wheat and 2.0% for canola.
Mike Jubinville with MarketsFarm told us, “Canadian production estimates were increased across most crops in this report. The only crops not seeing a big change were those grown in the heart of the Prairie drought regions during this past summer... that being central-south areas of western Saskatchewan and southern Alberta. That’s also typically the drier area of the Prairies and is outside the primary canola growing region. In terms of ‘real’ market influence... not sure I see anything game-changing coming from this report. While demand for high-quality/high-protein spring wheat from Canada has been strong this year so far (exports are running about 8% ahead of last year to date), the price trend remains weak.”
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