For 2006-07, the production of grains and oilseeds in Canada is estimated to decrease by 3% from 2005-06 to
64.4 million tonnes (Mt), 8% above the 10-year average of 60 Mt, based on Statistics Canada’s November Production Estimates. Yields are estimated to be near trend, although below 2005-06. In western Canada,  production decreased by 6% from 2005-06 to 48.0 Mt, but the grade distribution for all crops was better than normal. In eastern Canada, production increased by 3% to 16.4 Mt, but the rain delayed harvest has resulted in quality problems in the corn crop.

Record supplies of grains and oilseeds are expected for Canada for 2006-07, as the decline in production is more than offset by a 17% rise in carry-in stocks. Exports are forecast to increase by 13%, to a level not seen since 1994-95, mainly because of higher wheat shipments. Total domestic use is expected to rise, partly due to increased use of corn and wheat for ethanol production. Carry-out stocks are expected to fall by 21%, with declines expected for all crops except flaxseed and soybeans. Canadian prices for all crops, except flaxseed, are expected to be higher than in 2005-06 due to strong prices in the US. The Canadian dollar is expected to average stronger than in 2005-06. The major factors to watch are: the biofuel market, southern hemisphere crop development, ocean freight rates and exchange rates.

Full report: http: http://www.seedquest.com/News/releases/2006/pdf/17815.pdf