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Canada: Pulse and special crops outlook
Ottawa, Canada
June 28, 2006

Source: Agriculture and Agrifood Canada

SUMMARY

Statistics Canada (STC) estimates that the areas seeded to non-durum wheat, oats, corn, mixed grains, flaxseed
and soybeans have increased for 2006, while areas for durum wheat, barley, canola, rye and summerfallow have
decreased. Crop development and condition is, in general, normal. It is assumed that precipitation will be
normal for the growing and harvest periods and that quality will be normal. Trend yields are assumed for both
western and eastern Canada, as soil moisture reserves are good in most areas, although there are areas which
are too dry and other areas which have excessive moisture. The abandonment rate is expected to be normal.
However, in north-eastern Saskatchewan it is estimated that more than 400,000 hectares will not be seeded this
year due to excessive moisture, and the AAFC harvested area projections have been adjusted accordingly.

AAFC forecasts that total production of grains and oilseeds in Canada will decline by 6% from 2005-06, to 63
million tonnes (Mt), above the 10-year average of about 60 Mt. In western Canada, production is forecast to
decline by 7%, to 47.3 Mt, with eastern Canadian production down by 2%, at 15.5 Mt. Exports and domestic use
are expected to increase in 2006-07. Non-durum wheat, canola, feed barley and corn prices are expected to increase from 2005-06, while durum, oat, flaxseed and soybean prices are expected to decrease. Prices will continue to be pressured by the strong Canadian dollar. The major factors to watch are: growing conditions in the US corn belt, US and Canadian spring wheat crop conditions, the biofuel market, ocean freight rates and the Canada/US exchange rate.

Full report in PDF format: http://www.seedquest.com/News/releases/2006/pdf/16187.pdf

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