Minor Changes to New Crop Outlook

VANCOUVER - Mar 7/08 - SNS -- Agriculture Canada made minor adjustments to its new crop seeded area and production forecasts in its latest monthly update.

"For 2008-09, total area seeded to pulses and special crops in Canada is forecast to increase by 7% from 2007-08," Agriculture Canada said, "with increases for dry peas, lentils, mustard seed and canary seed, decreases for dry beans and chickpeas, and a stable area for sunflower seed.

"It is assumed that precipitation will be normal for the growing and harvest periods, and that the abandonment rate and quality will be normal. Trend yields are assumed for both western and eastern Canada. Total production in Canada is forecast to increase by 9% to 4.93 million metric tons (MT). Total supply is expected to increase by 3% to 5.45 million MT, as lower carryin stocks partly offset the increase in production. Exports, domestic use and carry-out stocks are forecast to increase slightly due to the higher supply.

"Average prices are forecast to increase for lentils, dry beans, chickpeas, mustard seed, canary seed and sunflower seed, but decrease for dry peas. The main factors to watch are weather conditions, especially precipitation, during the growing and harvest periods in Canada. Soil moisture reserves are good in eastern Canada, but range from dry to good in western Canada.

"Other factors to watch are the exchange rates of the Canadian dollar against the US dollar and other currencies, ocean shipping rates and growing conditions in major producing regions, especially India, Pakistan, Mexico, United States, European Union, Turkey and Australia."