Canadian Grain Production Down
22 February 2006 Lower yields are expected to offset increases in planted area for major grains in Canada, according to the US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS).
For 2006/2007, total wheat production is forecast to decline slightly to 26.6 MMT as normal yields are not expected to offset increases in total acreage seeded and harvested. Durum production is forecast to decline to 4.5 MMT, as both seeded acreage and yields decline. Barley production is forecast to increase to 12.8 MMT, due to an increase in seeded acreage. Maize production is forecast to decline to 8.8 MMT, due to lower yields.
Plantings are on the rise due to the increasing cost of production, driving producers toward maximizing their returns by planting crops with lower input costs. Based on the current crop prices and the fact that cereal crops generally have lower input costs, acreage for crops like non-durum wheat, barley, and oats are forecast to increase in the 2006/2007 crop year.
Total Canadian production of wheat for 2005/06 was up 3.5% to 26. 8 million metric tons (MMT) as high yields overcame a decline in area planted.
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