Canadas oilseed crop areas on the rise

Date:05-06-2010

The U.S. Department of Agriculture Foreign Agricultural Service (FAS) reported that Canada’s oilseed crop area is being pushed upward by the relatively higher returns to oilseeds compared to wheat.

According to FAS, area sown for flaxseed is down due to the shut down of flax exports to Europe after a finding of trace amounts of genetically modified seeds. The overall amount is not too large, however farmers may look to planting canola as an alternative.

FAS forecasted canola planted area expanding to 6.7 million hectares, up from 6.56 million hectares the previous season. Assuming normal yields, the 2010-11 crop is forecast at 11.9 million tonnes.

Canada’s canola exports during the first half of the 2009-10 marketing year totaled about 3.4 million tonnes on track for total exports of 7 million tonnes, according to FAS. Exports in 2010-11 are forecast at 6.6 million tonnes with increased crush capacity expected to keep more in country. The crush is forecast to increase to 5.2 million tonnes in 2010-11 compared to 4.5 million tonnes in 2009-10, according to FAS.

Soybean plantings are expected to increase to about 1.44 million hectares in 2010-11 compared to 1.39 million hectares in 2009-10. With average yields the crop should hit about 3.75 million tonnes, up from 3.5 million tonnes in 2009-10.

Soybean exports are forecast to decline slightly to 2.15 million tonnes in 2010-11. The 2009-10 imports are forecast at 420,000 tonnes compared to 387,000 tonnes in 2008-09. Imports in 2010-11 are forecast down to 300,000 tonnes due to larger domestic availability.

FAS said Canada’s 2009-10 sunflower seed crop is currently estimated at 102,000 tonnes off 65,000 hectares. Due to relatively higher expected returns 2010-11 the forecast is for 75,000 hectares planted area and 115,000 tonnes production.

Total canola meal is forecast to hit 3 million tonnes in 2010-11 due to the larger crop and increased crush capacity and is forecast to push exports from 1.85 million tonnes in 2009-10 to 2.15 million tonnes in 2010-11.

Soybean crush is forecast at 1.29 million tonnes in 2009-10 and about 1.4 million tonnes in 2010-11 reflecting the larger crop. Soybean meal imports are declining due to lower livestock numbers and higher domestic availability, according to FAS. Imports are forecast at 1.1 million tonnes in 2009-10 and 1.01 million tonnes in 2010-11.