are to make a surprise cut to their canola plantings this year, putting more
ground to wheat than had been expected, and to soybeans too.
Canadian growers are
to plant 19.8m acres (8.0m hectares) with canola this spring, falling for a
second successive year, Statistics Canada said, after a survey of 11,500
decline on last year contrasts with a market expectation that the figure would
show a rise of nearly 1.2m acres in plantings.
Assuming the yield
of 1.85 tonnes per hectare that the AAFC bureau is factoring in for Canadian
canola this year, and making some adjustment for crop loss, that gap between
the actual figure and the expected 21.1m acres is equivalent to more than 1m
tonnes in production terms.
biggest crop, is instead to prove more popular with growers this year than had
been thought, with StatsCan pegging sowings at 24.77m acres.
While down 1.25m
acres year on year, investors had expected a bigger drop in plantings, to 24.4m
acres, thanks to lower prices and prospects for returns.
growers are to raise area, by 745,000 acres to 5.26m acres, with peas and
lentils too among crops set to see increased seedings.
The data made
little impact on wheat markets, with Richard Feltes at RJ O'Brien nothing that StatsCan's
sowings report "tends to overestimate wheat area", besides underestimating
In Chicago, wheat
for July stood at $6.94 1/4 a bushel in late morning deals, not far from where
it had stood ahead of the data, and supported by fresh unrest in Ukraine, a big exporter of the grain.
Spring wheat, which
accounts for the majority of the Canadian crop, stood up 1.5% at $7.55 a bushel
Nonetheless, the size
of the shortfall in the canola sowings number helped November futures in the
rapeseed variant extend gains a little in Winnipeg, standing 0.8% higher at
Can$448.40 a tonne, pulling out of a steep decline in the run up to the report.
The rebound enabled
the contract to regain its 50-day moving average, which it closed below in the
last session for the first time in nearly two months.
weak canola sowings figure, reflects largely dynamics in the major growing
province of Saskatchewan, where farmers said they were planning a 1.9% drop in
sowings of the oilseed to 10.3m acres.
the second biggest growers, are planning a 1.6% in seedings, to 6.2m acres.
popularity of soybeans comes amid a drive by seed companies to develop
varieties suited to the Canadian climate, and which are also used by some Ukraine
Monsanto is undertaking a $100m, 10-year project to develop
earlier-maturing soybean, and corn, varieties suitable for the Prairies.
US Department of Agriculture staff in Ottawa last week
quoted a survey showing that "26m acres of western Canada [is] suitable for corn
and soybean with advanced seed breeding to develop short maturity varieties".
Farmers this year are expecting to sow a combined 8.6m acres
with the two crops.