Market News & Headlines >> StatsCan Wheat and Canola Estimates Bearish
The wheat market received bearish news on Wednesday from Statistics Canada in the form of a larger-than-expected 10.5% increase in Canada’s estimated all-wheat crop for 2017.
StatsCan pegged Canada’s all-wheat production at 29.98 million metric tons, up from a from a computer model-generated estimate of 27.13 million tons released in September and above trade estimates that averaged 28.0 million tons in a range from 26.8-29.5 million. The agency’s previous production survey, taken in August pegged the crop size at just 25.54 million tons.
Even with Wednesday’s increase, Canada’s production is still expected to be down 5.5% from 2016, but the new estimate is 3 million tons above USDA’s current forecast.
StatsCan also raised its estimate of Canada’s canola production more than expected to a record large 21.31 million metric tons, up 8.6% from last year’s 19.60 million and above trade estimates that averaged 20.20 million tons in a range from 19.80-21.00 million.
Canola production was also up from a September computer model-based estimate of 19.71 million tons, while StatsCan’s previous production survey in August had pegged the crop size at only 18.20 million tons.