World’s Top Canola Grower Anticipates Smallest Crop in 9 Years
(Bloomberg) -- The world’s biggest canola grower expects to harvest its smallest crop of the oilseed in nine years after high temperatures and drought slashed yields.
Canada is expected to harvest 14.7 million metric tons of canola this year, down almost a quarter from the prior year and its lowest since 2012, Statistics Canada said Monday in a production report. Wheat output is forecast to plunge to a 14-year low.
The forecast marks a turnaround from earlier expectations in the planting season. Canada’s canola crop was supposed to big this year with record-high prices spurring farmers to boost acreage to a three-year high. July’s severe heat wave, however, brought drought to large parts of the country and pared yields. The expected drop in grain and oilseed supplies comes as consumers feel the impacts of food inflation from rising prices.
Wheat production is forecast at 22.9 million metric tons, down 35% from last year and the lowest since 2007 due to lower anticipated yields and less harvested area. The drop is largely attributable to spring wheat, which has been hurt by drought in Western Canada.
Other highlights from the report:
- Corn for grain production is projected to rise 0.8% to 13.7 million metric tons due to higher yields despite a drop in harvested area.
- Soybean production is forecast at 5.8 million metric tons in 2021, down 8.4% due to lower yields even with more acres planted.
- Barley output is expected to fall 27% to 7.8 million metric tons due to hot and dry conditions, with yields seen falling 32% to 48.1 bushels per acre.
- Oat production is pegged at 3.1 million tons, a 33% drop on a lower harvested area. Yields are expected to tumble 22% to 71.4 bushels per acre.
- READ: Canada Sees Supply of Main Crops Dropping 26% on Drought Impact
- NOTE: Canada 2021 Crop Production Survey Ahead of StatsCan Report
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