The grain harvest in the Northern Hemisphere is almost complete, although Canada is an exception. The grain and rapeseed harvest is still in progress there. New government figures show that both crops will produce fewer tons this year.
The Canadian statistics agency Stat Canada estimates that total Canadian wheat production for the 2019 crop year will be 31,25 million tonnes. In addition, market analysts had taken into account a production of 32,3 million tons, which is why some describe the news as bullish.
Significantly more spring wheat
Spring wheat plays a major role in this. Production has increased to over 25 million tons, compared to 23,9 million tons a year earlier. That is an increase of 1% and therefore the second largest production since 5. As a result, the volume of winter wheat has decreased by 1%. Production of hard durum wheat has also fallen by 1992%.
The country's wheat harvest is now 38% complete, compared to 65% normal. Since wetter and colder weather is forecast in the northern growing regions in the next 2 weeks, the harvest is not expected to go well.
Rapeseed cultivation hit hard
The rapeseed harvest is also lower this year. This crop is hit hardest by the sanctions that China has imposed on Chinese oilseeds. Canadian arable farmers have pinned their hopes on Europe, where yields are smaller due to drought and cultivation problems. Last year, China purchased half of Canada's rapeseed production. As the production of ethanol increases, there is also more demand for the oilseed.
Due to the smaller wheat harvest, companies also hope for a better wheat price. However, that remains to be seen, due to the good supplies on the global market. The good harvest of spring wheat is also suppressing a price increase. However, there may be more demand for good quality durum wheat.