Drought has wreaked havoc throughout the growing season in western Canada. It not only results in fewer hectares of grain, but also in a considerably lower yield. As a result, the country harvests considerably less grains. In some cases, it is the lowest yield in 14 years.
The Canadian statistics agency Statistics Canada published an official forecast for the country's grain harvest on August 30. Wheat production drops by 35% compared to 2020 to 22,9 million tons. Partly due to a lower hectare yield, which has decreased by almost 30%, and partly due to a smaller acreage. This figure is smaller than what the American Department of Agriculture, for example, the USDA calculates. A recent forecast put this at 24 million tons.
Due to drought in western Canada, significantly less spring wheat was sown this spring. As a result, the area decreases by 8,5% to 9,18 million hectares. Durum wheat is also less sown. The area of winter wheat – a lot smaller than the other wheats – can be called stable. The drought lasted throughout the season, causing hectare yields to take a significant hit.
Smallest rapeseed harvest in 9 years
The yield of rapeseed is also decreasing. Nationally, almost a quarter less rapeseed is being harvested, making the harvest of 14,7 million tons the worst since 2012. The yield per hectare has decreased by 30%. Arable farmers in the country had sown significantly more rapeseed (+8% to 8,94 million hectares) because of the favorable market for this product. Yields are declining, especially in the province of Saskatchewan.
Grain maize and soybeans – both crops that are considerably smaller than in neighboring US – show different figures. Statcan estimates the corn harvest to be slightly higher than last year with a total volume of 13,7 million tons. That is almost one percent more than was harvested last year. The area has shrunk. Corn is mainly grown in Ontario. The yields per hectare are favorable here. Soy cultivation has declined by 8,5%. At 5,8 million tons it is a relatively small crop. The yield of barley (-27%) and oats (-33%) are also declining.
What does it mean for us?
Canadian wheat is mainly exported to the EU as baking wheat. This season is also scarce in the EU due to quality problems, which means that the small Canadian harvest comes at a very unfavorable time. The equally low yields in the US cannot take over the export position. Canada is a powerhouse in the field of vegetable oils. This year the country must also fail to attend. Australia in particular can benefit from this, with a larger rapeseed harvest on the horizon.