Drought reduces wheat production in Canada

Extremely low soil moisture in Alberta and Saskatchewan has led to lower yields, FAS said.

Total wheat milled is expected to be in line with recent years based on ongoing supply and demand. Feed demand is expected to be slightly lower than the previous year.

Even with strong exports in the first half of 2023-24, total exports are expected to decline by 9% year-on-year due to lower exportable supplies, the FSA said. Non-hard wheat exports increased by 11 percent compared to the previous year.

China was the largest buyer of Canadian non-durum wheat in the first four months of 2023-24, purchasing 944,400 tonnes, down 31% from the same period a year earlier. Indonesia was the second largest buyer of non-durum wheat, reaching 700,600 tons, an increase of 48% from the previous year.

FAS said Canada and Saudi Arabia re-established diplomatic relations in May 2023. This led to a rebound in durum wheat exports to Saudi Arabia. Wheat exports to India, via the Arabian Sea from Saudi Arabia, will also increase in 2023.

Imports increased by 26 percent compared to the same period last year due to a decrease in domestic supply. Imports are expected to end the marketing year with a 5% increase from 2022-23. Nearly 100% of imports of durum and non-durum wheat so far this year have come from the United States, the FDA said.

Written by Susan Reddy – World Grain (world-grain.com)