General Increase in Canadian Oilseeds

OTTAWA - Aug 22/08 - SNS -- Canadian oilseed production is expected to increase over last year, according to Statistics Canada, helped by expected increases in both canola and soybeans.

"Canola production is poised to rise above the previous high reported in 2007," Statistics Canada said. "Canola production could increase by 847,000 metric tons (MT) over 2007, the result of both an anticipated above average yield of 29.3 bushels per acre and an expected strong harvest area of 15.6 million acres. Market demand for biodiesel and increasing crushing capacity, coupled with the high prices at the time of planting, may have motivated farmers to plant more canola."

Farmers reported they expect to produce 10.4 million MTof canola based on area seeded and anticipated yields, exceeding the previous record production of 9.5 million MTin 2007. Farmers also anticipated strong gains in 2008 in soybean production.

"This optimism comes despite weather-related challenges earlier in the growing season such as excess rainfall in many areas of the country and hail in parts of the Prairies. Actual production will depend to a large extent on the weather during the remainder of the 2008 growing season," Statistics Canada said.