(Jen Skerritt – Bloomberg)
Wheat growers in Canada, the world’s second-largest exporter, plan to increase seeding by 3.9 per cent, according to a government report. Estimates for soybean and canola seedings unexpectedly fell.
Farmers may sow 24.8 million acres of wheat, up from 23.8 million a year earlier, Statistics Canada said in a report. The average estimate of nine analysts surveyed by Bloomberg was 24.1 million. Soybean planting may decline 3.4 per cent to 5.4 million acres, compared with the 5.8 million analysts forecast.
The outlook comes after wet weather delayed seeding in the Prairies last year. While analysts expected increased plantings of soybeans that are seen as more resilient in adverse weather, lower costs make wheat attractive amid falling prices for grains and oilseeds, said Ken Ball, a senior commodity futures adviser at PI Financial. “It’s a little bit cheaper to grow wheat,” Ball said. “When all prices are on the low side, that does become a factor.” Click here to read more.