General Hike in Special Crop Area Seen

VANCOUVER - Jan 29/10 - SNS -- Agriculture Canada is expected specialty crop area in western Canada to rise 9% this year, with all crops expected to rise in area except colored beans.

Agriculture Canada's market analysis branch in Winnipeg said, "Average yields are generally expected to decrease from the high levels attained in 2009 and trend yields are assumed for both western and eastern Canada. Total production in Canada is forecast to fall marginally to 5.6 million metric tons (MT).

"Total production and supply are expected to decrease marginally and exports are expected to decrease accordingly. Domestic use and carry-out stocks are forecast to rise slightly. Prices, averaged over all types, grades and markets, are forecast to fall for all crops. The main factors to watch are commodity prices and input costs, precipitation in Canada over the winter and the Canada-US exchange rate.

"For 2009-10, prices for all pulse and special crops (P&SC) in Canada have averaged lower than 2008-09. Total exports and carry-out stocks in Canada are forecast to increase due to higher supply. Carry-out stocks are forecast to rise sharply for lentils and slightly for mustard seed and dry beans while decreasing for the remaining crops."