Canada producing less wheat, canola than expected
Canadian farmers are on course to produce less wheat and canola than expected, according to Statistics Canada's first report on the 2014 harvest.
Statscan, using a farmer survey, pegged the all-wheat crop at 27.7 million tonnes, down 26 percent from last year's record harvest and below the average trade expectation of 28.5 million tonnes.
Canola production looked set to reach 13.9 million tonnes, a drop of 23 percent from last year and less than the average trade forecast of 14.5 million tonnes.
"I think the trade is going to view this report as fairly friendly (to price)," said Dave Reimann, market analyst for Cargill Ltd's grain marketing services division. "The canola number is going to jump out a little bit because we're looking at a tightening supply situation versus last year, and this turns the screw one more turn."
Canola prices are otherwise weighed down by expectations for a big U.S. soybean crop. Soybeans are a rival oilseed in the global vegetable oil market.
ICE Canada November canola futures were up slightly after the report.
Canada is usually the world's second- or third-largest wheat exporter and the biggest shipper of canola, a cousin of rapeseed used largely to produce vegetable oil.
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