Canada Now Says Wheat Output to Fall, Not Rise, Amid Dry Weather

Canada, one of the world’s top wheat exporters, scrapped a forecast for an increased crop this year and said it now sees production slumping 8.8 percent as dry weather hampers yields.

Output will be 27.1 million metric tons, down 7.4 percent from 29.3 million tons a year earlier, Agriculture and Agri-Food Canada said Tuesday in a report. Last month, the forecast was 29.7 million. The agency cut its forecast for canola production by 4.2 percent.

“In western Canada, below-trend yields have been assumed to account for extremely dry conditions in regions of Alberta and Saskatchewan,” the government said. “Should dry conditions continue in western Canada, yield forecasts may have to be revised down further.”

Canola output will be 14.3 million tons, down 8.1 percent from a year earlier, the government said. Canada is the biggest producer of the oilseed.

Wheat output will probably fall to 24 million tons, and canola production will decline to 12.2 million tons, Bruce Burnett, weather and crop specialist at Winnipeg, Manitoba-based grain marketer CWB, said Tuesday in an interview. Growing conditions have been below-average in parts of the Prairies because of a lack of moisture and hot, dry conditions, he said.

“The growing conditions are pretty much dismal compared to last year,” Burnett said in Prince Albert, Saskatchewan, on the first day of a Canada crop tour. “It’s basically dryness.”

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