Canada Produces Record Crop

Canada produced a record canola crop this year and raised wheat output by nearly 43%, at a time when grain prices are slumping as a global recession worsens, USAgNet reports.

Canada, one of the world’s top grain exporters, posted the highest yields ever recorded for spring wheat, barley, canola and oats, Statistics Canada said in its final 2008 report, adding that the fall harvest ended slightly ahead of the normal pace.

“Cool and wet conditions held back the harvest in early fall, but little frost damage and improved conditions allowed progress to end up slightly ahead of normal,” Statistics Canada said.

The production numbers exceeded trade expectations, sending Intercontinental Ex-change canola futures tumbling more than 3% and pressuring prices of wheat futures in the U.S. ❖