Drought lowers Canada’s 2023-24 wheat production

Despite a larger planted area, Canada’s wheat production in 2023-24 dropped 7% from the previous year to 31.95 million tonnes, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA).

Severely low soil moisture in Alberta and Saskatchewan reduced yields, the FAS said.

Total wheat milled is expected to be in line with recent years, based on steady supply and demand. Animal feed demand is forecast to be slightly lower than the previous year.

Even with strong exports in the first half of 2023-24, total exports are expected to drop 9% year-over-year in lower exportable supplies, the FAS said. Exports of non-durum wheat increased 11% over the previous year.

China was the largest buyer of non-durum Canadian wheat in the first four months of 2023-24, purchasing 944,400 tonnes, 31% less than the same time frame the previous year. Indonesia was the second largest buyer of non-durum wheat, purchasing 700,600 tonnes, a 48% increase over the previous year.

Canada and Saudi Arabia restored diplomatic ties in May 2023. This led to a rebound in exports of durum wheat to Saudi Arabia, the FAS said. Exports of wheat to India, across the Arabian Sea from Saudi Arabia, also increased in 2023.

Imports have increased 26% over the same period in the previous year on lower domestic supplies. Imports are forecast to end the marketing year up 5% from 2022-23. Nearly 100% of durum and non-durum wheat imports year-to-date has come from the United States, the FAS said.

Tags: wheat, yields, forecast, durum wheat, animal feed, China, demand, exports, non-durum wheat, Indonesia, Canada, Saudi Arabia, Production