Improving conditions to boost Canadian wheat production
Canada’s wheat production is expected to rise by 11% in 2024-25 to 35.5 million tonnes, up from 31.9 million in 2023-24, due to improved crop conditions. Significant gains are noted in Saskatchewan and Alberta, with better moisture levels boosting spring and durum wheat conditions. Total wheat exports are forecasted to increase to 25.7 million tonnes, up from 24 million tonnes. However, there is concern that demand from China might decline due to competitive pricing from other suppliers.
OTTAWA, ONTARIO, CANADA —Significant improvements in crop conditions in major wheatgrowing regions of the Canadian prairies is expected to boost the nation’s wheat production by
11% in 2024-25, according to a report from the Foreign Agricultural Service (FAS) of the US
Department of Agriculture.
Production is estimated at 35.5 million tonnes, up from 31.9 million tonnes in 2023-24.
Due to improved moisture, crop conditions in Saskatchewan and Alberta are better than historical
averages, the FAS said. The percentage of spring wheat area reported to be in good-to-excellent
condition has increased 39 percentage points in Saskatchewan and 32 percentage points in
Alberta over the previous marketing year.
Durum classified as in good-to-excellent condition increased 61 percentage points in
Saskatchewan and 45 percentage points in Alberta as a share of total durum.
Total wheat exports are expected to reach 24 million tonnes in 2023-24, equating to 68% of domestic supply, one percentage point above the record-high in 2022-23.
“Canada is forecasted to become the world’s third largest exporter of wheat in 2023-24, after
Russia and the European Union, according to international data from the USDA,” the FAS said.
Exports are forecast to increase to 25.7 million tonnes in 2024-25 based on the expectation of an
increase in wheat production and an assumption that exports as a percentage of domestic supplies will remain high.
“The downside risk of this export forecast is that demand from China will decline from the high import volumes reached in 2022-23 and 2023-24 due to competitive pricing from other suppliers,” the FAS said.
Source Link : https://www.world-grain.com/articles/20268-improving-conditions-to-boost-canadian-wheat-production
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