Reuters / Agriculture and Agri-Food Canada has slightly raised its forecast for canola plantings, while trimming its wheat estimate.
Dry conditions heading into planting season are expected to boost plantings of most major crops, after flooding wiped out millions of acres last year.
The latest estimate pegs canola acreage at nearly 20.4 million acres, up from its estimate of about 19.8 million acres recently, with production at 15.4 million tonnes (compared to an estimate of 15 million tonnes). Canola prices recently spiked to a six-month high, offering attractive returns to farmers.
The department slightly lowered its estimate for all-wheat plantings to 23.9 million acres from 24 million acres, and lowered its production outlook by 200,000 tonnes to 26.1 million tonnes.
Ag Canada’s estimate for durum plantings slipped to 4.5 million acres from 4.6 million, dropping forecast production by 100,000 tonnes to 4.4 million tonnes.
The department left planting and production estimates unchanged for oats and barley.