Market News & Headlines >> Canada's Wheat Acres Down Less Than Expected
Thursday morning's planting intentions report from Statistics Canada looked a bit unfriendly for wheat prices, but was supportive for oilseed markets as it pegged Canadian wheat intentions above the average of trade estimates, while showing lower-than-expected canola intentions.
StatsCan estimated Canada’s all-wheat seeding intentions at 24.77 million acres, down 4.8% from last year’s 25.02 million, but toward the high end of trade estimates that averaged 24.40 million acres in a range from 23.1-25.5 million, according to a Reuters News Service poll.
The big surprise in the report, however, was StatsCan’s estimate of Canola planting intentions, which came in at 19.80 million acres, down from 19.94 million last year and near the low end of trade estimates, which averaged 21.1 million acres in a range from 19.5-22.2 million.
Lower wheat seedings were expected due to weak cash wheat prices resulting from the inability of Canada’s transportation system to move last year’s record crop production into the export market in a timely manner. Canola was seen gaining acreage due to favorable prices.
Larger soybean plantings may be one reason canola plantings intentions fell short of expectations, however, as Statscan pegged soybean intentions at 5.26 million acres, up from 4.52 million acres last year. Trade estimates of soybean intentions averaged 4.80 million acres in a range from 4.50-5.00 million. Flaxseed acreage was also up 700,000 to 1.7 million versus trade estimates averaging 1.3 million.