Canada is on track to produce less wheat and slightly less canola than traders had estimated after a dry spring and summer curbed production, according to Statistics Canada's first crop output report of the year. Statscan on Friday pegged the all-wheat crop at 24.63 million tonnes, down 16 percent from last year and below the average trade expectation of 25.6 million tonnes.
Canola production looked set to reach 13.34 million tonnes, down 14 percent from 2014 and just below the average trade guess of 13.6 million tonnes. Farmers replanted many canola fields in Manitoba after damaging May frosts, while hot, dry conditions in Saskatchewan and Alberta stunted growth of canola, durum and spring wheat. Estimates "are certainly a bit lighter than the trade estimated," said Cargill Ltd market analyst Dave Reimann. "Having said that, I think the market will view these as some of the lower numbers we'll see this year."
The dry western Prairies received some rain and moderate temperatures since Statscan conducted its farmer survey from July 22 through August 3, Reimann said. ICE Canada November canola futures eased 0.1 percent to C$478 per tonne after the report. Canada is one of the world's biggest wheat exporters and the biggest shipper of canola, a cousin of rapeseed used largely to produce vegetable oil.