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Canada raises canola, wheat harvest views after favorable weather

WINNIPEG, Manitoba/OTTAWA - Canada on Friday raised its estimates for the canola and wheat harvests after recent favorable weather helped offset damage from hail and dry conditions last spring, according to a Statistics Canada report on Friday.

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WINNIPEG, Manitoba/OTTAWA - Canada on Friday raised its estimates for the canola and wheat harvests after recent favorable weather helped offset damage from hail and dry conditions last spring, according to a Statistics Canada report on Friday.

August rains and mild September weather topped up yields in Western Canada, the country's main crop-growing region.

Statscan pegged the 2015/2016 all-wheat crop at 26.06 million tonnes, higher than its Aug. 21 estimate of 24.6 million tonnes and above the average trade expectation of 25.1 million in a Reuters poll. The harvest would be 11 percent smaller than a year ago.

The canola crop looked set to reach 14.3 million tonnes, 1 million tonnes higher than Statscan's previous estimate, and just below the average trade guess of 14.5 million tonnes. Output would be 13 percent lower than a year ealier.

 

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The canola estimate didn't surprise, but many in the trade expect the real size of the harvest is about 15 million tonnes, said Wayne Palmer, market analyst at AgriTrend Marketing.

"I've been taught through the years that big crops get bigger," he said, adding that yields have exceeded expectations.

ICE Canada November canola futures traded slightly lower after the report.

Statistics Canada's report was based on a farmer survey. On Sept. 17, Statscan also issued higher wheat and canola production estimates in a report that factored in satellite and other climate data.

Canada is one of the world's largest wheat exporters and the biggest shipper of canola, which is processed for vegetable oil.

Related Topics: WHEATCROPS
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