The Canadian Wheat Board expects increased global grain production and depressed markets to result in increased oilseed production this year and slightly lower wheat and barley production.
After warm spring temperatures allowed producers to get an early start on planting this year rains and cooler temperatures during May slowed progress and seeding is now running slightly behind average.
Canadian Wheat Board weather and crop analyst Stuart McMillan estimates planting is about 65 percent complete compared to about 80 percent at this point in a normal year and about 78 percent last year.
Early on many of the producers were starting off with some of their cold tolerant cereals.
Quite surprisingly a lot of producers started getting in some of their more cold intolerant crops, corn, soybeans, canola much earlier than usual.
Overall the assumption was, with the moisture that was there, the producers wanted to take advantage of that while it was there.
We anticipate seeing certainly I think higher oilseeds are to be expected this year and overall I think, in terms of seeded area, it would be safe to say we’ll see a little bit less wheat and a little bit less on the barley side as well.
I think for the big part we have a large carry-out globally.
Prices have been fairly depressed and with the fairly sizable acres that are anticipated to go into the former Soviet Union, the E.U., good crop conditions over in Australia, all indicators are that we’re going to potentially see prices trend even lower.
There’s not really any big challenges to the crops that are out there as of yet so right now we’re really in a situation where there’s abundant supplies and the forecast is looking for even more supplies.
McMillan notes we are seeing increased interest in the new general purpose class of wheat which targets feed and industrial uses.
He says the strong local ethanol market encourages producers to grow more of the starchy varieties suited to ethanol production and we’re seeing a strong local feed demand.
Source: Farmscape.Ca
