Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Canadian farmers expected to plant less canola, more wheat in 2020

Published 2020-05-07, 10:15 a/m
© Reuters.
RSc1
-

By Kelsey Johnson

OTTAWA, May 7 (Reuters) - Canadian farmers plan to seed less canola and more wheat in 2020, Statistics Canada said on Thursday, but noted the coronavirus crisis meant the agency's survey data was collected under "exceptional circumstances" that resulted in a lower response from farmers.

The survey of about 11,500 farmers was conducted from March 2 to March 20. Statscan said it had to suspend some collection methods, like telephone interviews, as of March 16 because of the coronavirus, which affected the survey's typically high response rate.

"Estimates for this release were produced under exceptional circumstances due to COVID-19," the agency said in a note, adding that, given the lower response rate, "caution should be exercised when using these estimates."

Subsequent surveys planned for this year, the agency said, will provide estimates of actual seeded acreage.

Canola plantings are likely to reach 20.6 million acres, down 1.6% from last year, the lowest seeded area since 2013, Statscan said. That figure is below the average trade guess of 21.1 million acres. likely due to the weak price performance, and China is an issue in that," Chuck Penner, an analyst with Leftfield Commodity Research, said when asked about the low canola acreage.

China blocked canola seed shipments from Canada's top two exporters last year, citing pest concerns, but has allowed some shipments from other companies to continue. seeding intentions were pegged at 25.4 million acres, up 3.3% from last year, and just slightly above the average trade expectation of 25.3 million acres. Meanwhile, durum wheat acreages were up 6.8%, to 5.2 million acres.

Planting on the Canadian Prairies, where most of the country's canola and wheat are grown, happens mostly in May and June.

Canada is one of the world's largest wheat exporters and the biggest shipper of canola, a cousin of rapeseed used largely to produce vegetable oil.

In a separate release, Statscan said total wheat stocks were up 1.6%, to 17.8 million tonnes from last year's 17.5 million. Canola stocks declined 12.3%, to 8.9 million tonnes from 10.2 million tonnes a year earlier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.