Canada’s Wheat Crop Falls to Lowest in 14 Years Amid Widespread Drought

Recent drought conditions across Canada’s agricultural provinces have caused wheat crops to fall to the lowest in more than a decade.

According to a Statistics Canada report published on Monday, the country’s wheat crop has fallen to the lowest in 14 years, while the canola harvest has shrunk to a nine-year low. The report found that this year’s all-wheat harvest is expected to total 22.9 million tonnes, which is 35% lower compared to last year, but still slightly larger than the average forecast of 11.6 million tonnes. Meanwhile, Canada’s canola production is expected to reach 14.7 million tonnes, which is 24% below the same period a year ago, but also larger than the average forecast calling for 14.1 million tonnes.

Dry soil conditions, coupled with scorching-hot temperatures, have enveloped Canada’s western crop-producing provinces, significantly diminishing yields. The drought has thus far forced millers and bakers to pay higher input costs for spring wheat, while canola prices have risen to new record-highs. “I think buyers around the world have already made major shifts,” explained IntelliFARM president Brian Voth to CTV News. “A lot of rationing has to happen.”

According to Voth, major canola imports will likely have to shift their demand to Australia, Ukraine or western Europe to make up for Canada’s crop shortages. Similarly, many US mills, which largely depend on Canadian wheat to produce flour, may have to source wheat from other crop-producing regions.

The Crop Condition Assessment Program (CCAP) for July 30 to August 3, comparing Normalized Difference Vegetation Index (NDVI) in Western Canada to normal. Green indicates areas where crop condition is higher than normal, yellow where conditions are similar, and brown areas indicate lower crop condition.

Information for this briefing was found via Statistics Canada and CTV News. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Canadian Dollar Soars to Three-Year High Amid Commodities Price Rally

The Canadian dollar soared to the highest in three years, topping 80 cents US on...

Thursday, February 25, 2021, 04:01:00 PM

Unseen Threat: China’s Commodities Stockpile Could Shake the World

Over the past two decades, China has consumed vast amounts of raw materials to support...

Thursday, July 25, 2024, 09:20:13 AM

BMO: China’s Real Estate Market Poses Large Threat To Commodities

BMO Capital Markets recently released their fourth quarter commodity price update saying that the global...

Monday, October 11, 2021, 01:18:00 PM

Holy Crop! Record Drought Pushes Produce Shortages

The United States is currently experiencing one of the worst droughts in known history, forcing...

Sunday, August 21, 2022, 09:00:00 AM

The Copper Shortage No One Is Talking About

The world’s largest mining companies and metal traders are warning that a massive shortfall of...

Friday, February 3, 2023, 07:36:00 AM