Canada produced a record smashing canola crop this years said Statistics Canada on Tuesday, topping most analysts’ expectations.
However, the canola market was up slightly in morning trade.
January canola is trading at $505.50 per tonne, up $2.50.
Stronger soybeans supported canola as did strong cash demand.
Canola production hit a record 14.17 million tonnes, smashing the previous record of 12.89 million tonnes in 2009, and at the top end of a range of trade expectations.
Canola exports and crush are running ahead of last year so demand is good but the large production number might mean larger than expected year end stocks.
Barley prices will be supported by a smaller than expected crop. Statscan lowered its estimate for barley production to 7.756 million tonnes from 7.9 million tonnes, falling below the average trade estimate of eight million tonnes.
Total wheat production was up nine percent year over year to 25.26 million tonnes, Traders, on average, had expected 24.5 million tonnes. Statscan’s estimate earlier this fall was 24.2 million tonnes.
Minneapolis spring wheat futures were little changed in morning trade.
Statscan said farmers harvested 4.17 million tonnes of durum, up from its previous estimate and at the top end of trade estimates.
Oat production was three million tonnes, matching expectations.
Average yields for wheat were record high. Spring wheat on average yielded 42.7 bushels per acre and durum was 39 bu. per acre. Canola yields averaged 33.8 bushels per acre, the biggest in two years.
The Statscan survey of 28,600 farmers was conducted between Oct. 24 and Nov. 10.
The Canadian dollar at noon was 98.84 cents US, up from 98.61 the previous trading day. The U.S. dollar at noon was $1.0117 Cdn.
