AAFC forecast cuts wheat outlook, maintains canola

Canada’s agriculture department has lowered its forecast for wheat production in its grain and oilseed outlook.

Agriculture and Agri-Food Canada pegged the 2011-12 all-wheat crop at 23 million tonnes, down from its July estimate for 24 million tonnes.

Crop development is one to two weeks behind normal, but warm weather has accelerated growth.

Spring wheat and durum wheat are major crops in some areas of Western Canada that had severe floods this spring, particularly in southeastern Saskatchewan.

Canola and oat production forecasts remain at 13.4 million tonnes and 2.85 million tonnes respectively.

The outlook is based on analysis, not a farmer survey.

A report issued by a U.S. Department of Agriculture attache in Canada pegs the wheat crop at 22.4 million tonnes.

Statistics Canada will give its first forecast of the year for crop production on Aug. 24, based on a farmer survey.

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