Canada's Oilseed Supplies Down

OTTAWA - Oct 4/07 - SNS -- This year's general decline in oilseed production levels in Canada will combine with smaller ending stocks for a significant tightening of available supplies on the market when compared to last season, judging from the latest crop production estimates from Statistics Canada.

Farmers report that canola production could decline a slight 2.2% from last year to an estimated 8.8 million metric tons (MT), the result of an expected drop in yield of 3.6 bushels per acre. The drop in production may occur despite an anticipated record harvest area of 14.2 million acres. The previous record was 14.1 million acres reported in 1994.

The smaller harvest should see available supplies of canola slip from 11.007 million MT last season to a forecast 10.684 million in 2007-08.

In Manitoba, production could fall to 1.7 million MT, down 6.8% from 2006. This may occur despite an expected record harvested area of 2.8 million acres. And in Saskatchewan, canola production is anticipated to rise 7.4% to 4.0 million MT, the result of an increase in harvested area to a record 7.1 million acres. The previous record harvested acreage of 6.6 million acres was set in 1999. In Alberta, farmers reported a possible 10.0% reduction in canola production to 3.1 million MT, the result of a 8.9% drop in yield to 30.7 bushels per acre. In all three Prairie provinces, production is expected to remain above the five-year average.

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