Drought in Canada puts canola harvest at risk

Canadian farmers increased canola sown area this spring to profit from record-high prices, although Prairie drought is threatening to severely damage the crop, Reuters reports.

It is noted that the growing demand for cooking oil and canola meal has caused global prices for oilseeds, including canola, to rise this year. However, supply looks uncertain as high temperatures and dry soils slow crop development.

The federal government’s Canadian Drought Monitor data reveal that most of the Manitoba cropland suffers from extreme drought conditions, while Saskatchewan is mostly experiencing moderate to severe drought.

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Bill Campbell, a farmer from Minto, Manitoba, marks that this is the driest season since 1988. He adds that canola, oats and maize are discoloured and leaves are curled, indicating plant stress. A sharp rise in temperature is forecast for this week.

Statistics Canada says that canola plantings in the current crop year reached 22.5 mln ac (9.1 mln ha), 1 mln ac (404.69 thou. ha) above the April plantings estimate and 8% up YoY.

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Wheat plantings are estimated at 23.4 mln ac (9.47 mln ha), slightly above the 23.3 mln ac (9.43 mln ha) put in the April report and 6.5% down YoY.

According to Lawrence Klusa, president of Seges Markets, stocks of both canola and wheat will be lower on dry conditions on the Prairies and in the US state of North Dakota.

November canola futures on ICE Canada were little affected after the report publication, rising 5% on heat wave fears.

Previously reported that rapeseed production in Ukraine is projected 6% down YoY in the current crop year.