Canadian Crops May Help Backfill U.S. Demand

According to Reuters, Canadian production of corn and soybeans this year stands to backfill a small part of U.S. demand for those crops, after the Midwest drought slashed U.S. production. The Midwest drought also extended to Ontario, curtailing potential production of corn and soybeans in the province that is Canada’s biggest grower of each.

But even though volumes are small compared to the billions of bushels harvested annually in the Midwest, nearby Canadian supplies are in a good position to fill part of the U.S. shortfall between supply and demand.

Searing summer drought slashed U.S. corn production to the lowest level in six years and soybeans to the lowest in nine years, USDA forecast, although its corn estimate was larger than expected.

Canadian soybeans are on course for a record-large 4.4 million-ton harvest, with corn output looking to reach 11.7 million tons, up about 9% from last year.