Wheat output to increase
Canadian wheat production is expected to increase by over 4% this year, reaching about 34.4 million tonnes, according to Statistics Canada. This is below analysts’ forecast of 35.125 million tonnes. The spring wheat crop is projected at 25.4 million tonnes, slightly below last year’s 25.5 million and analysts’ estimate of 26.6 million. Despite this increase, global wheat supplies are expected to hit a nine-year low due to poor weather in Russia
CHICAGO, Ill. (Reuters) — Canadian wheat production will increase more than four per cent this year, Statistics Canada said last week, less than analysts had expected at a time when global supplies are expected to reach a nine-year low.
Total output is projected to reach about 34.4 million tonnes, compared with 32.9 million in 2023, the agency said in a survey based in part on satellite and agroclimatic data. Analysts polled by Reuters expected 35.125 million.
Canada’s spring wheat crop was seen at about 25.4 million tonnes, down from 25.5 million last year and analysts’ estimates for 26.6 million.
Globally, wheat ending stocks have fallen five years in a row and are expected to reach a nine-year low in 2024-25 after adverse crop weather hit top-supplier Russia.
However, Chicago Board of Trade wheat futures prices are still near four-year lows as U.S. wheat ending stocks are projected at a four-year high in 2024-25. The market also faces pressure from corn and soybeans, which are in plentiful supply.
The U.S. Department of Agriculture projects Canada’s crop at 35 million tonnes.
Statistics Canada said lower-than-average precipitation and prolonged high temperatures across the Prairies hurt crop conditions from the beginning of the season.
Source Link : https://www.producer.com/markets/wheat-output-to-increase/
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