Canada has now cut its forecast for grain and oilseed production by 21% for the year, with barley in particular hitting a 32-year low because of flooding. The downgrade indicates a drop in output of 19 million tons due in part to acreage changes posted last month by Statistics Canada as farmers shift away from grain production to oilseed and pulses. Agriculture and Agri-Food Canada (AAFC) cut its estimate for the Canadian grain and oilseed harvest to 71.2 million tons which includes post-planting losses. In Saskatchewan 3 million acres have been abandoned, and in Manitoba 2.5 million acres. For barley, the AAFC forecast an output of 7.34 million tons – the lowest since 1982, and for wheat, estimates have been cut by 1.87 million tons to 27.74 million tons – a 26% drop from last year. Canola output will fall 300,000 tons to 14.45 million tons after rains prevented some sowing and increased the occurrence of pests and disease. The U.S. Department of Agriculture’s (USDA) predictions are slightly more optimistic, forecasting Canada’s wheat crop to be 28 million tons and its canola crop to be 15.7 million tons with improved weather expected for the coming weeks.
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