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  • By Lynda Kiernan-Stone, Global AgInvesting Media

Canadian Wheat, Canola Output Lower than Expected

After a dry spring and summer, Canada, one of the world’s top wheat exporters and the biggest exporter of canola, is on pace to produce less wheat and canola than traders were originally expecting, according to the first crop outlook report issued by Statistics Canada (Statscan).

On August 21 Statscan estimated Canada’s total wheat crop at 24.63 million tons – a 16% decline from last season and below the 25.6 million tons expected by traders, and the agency set the country’s canola production for this year at 13.34 million tons – representing a 14% drop from last year and slightly lower than the expected 13.6 million tons.

It has been a difficult season for canola in Canada as many farmers replanted many fields in Manitoba after damaging frosts in May, while dry and hot conditions negatively affected the season in Saskatchewan and Alberta cutting into the durum, canola, and spring wheat crops.

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."

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