Ag Canada Sees Specialty Crop Jump

VANCOUVER - Aug 10/07 - SNS -- Canadian specialty crop productiopn levels are still forecast to rise 13% to around 4.6 million metric tons (MT) by Agriculture Canada, which left forecast yields unchanged despite a month of unusually hot and dry conditions across the primary growing region.

"Soil moisture conditions are mostly normal," ASfgriculture Canada argued in last week's Pulse and Special Crops Outlook, "but there are dry areas in western Canada and Ontario. Crop development is mostly ahead of normal because of the hot weather in July. Harvesting of dry peas, lentils and mustard seed has started.

"Overall, trend yields are expected for dry peas, mustard seed, canary seed and sunflower seed, and below trend for lentils, dry beans, chickpeas and buckwheat, assuming that the weather will be normal for the remainder of the growing period and for the harvest period. Also based on that assumption, the abandonment rate and quality are expected to be normal."

Agriculture Canada added that ending stocks "are expected to decrease to historically low levels for most crops. Average prices, over all types, grades and markets, are forecast to increase for 2007-08, over 2006-07, for dry peas, lentils, dry beans, mustard seed, canary seed, sunflower seed and buckwheat, but decrease for chickpeas.

"The main factors to watch are growing and harvest conditions in Canada and in other major producing regions, especially the US, Australia, the EU, the Middle East and India. Other factors to watch are currency exchange rates and ocean shipping costs."

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