Canada's wheat production in the 2021-22 marketing year is expected to shrink significantly due to one of the hottest and driest summers ever, according to a report from the Global Agricultural Information Network of the U.S. Department of Agriculture's Foreign Agricultural Service (USDA).
The USDA is forecasting wheat production of just 21.7 million tons, 38% less than last year and the lowest level since a harvest of 20 million tons in 2007-08.
The average yield for all wheat species is expected to fall more than 30% below the five-year average of 3.42 tons per hectare, the USDA said.
"In 2021, a drought spread across large areas of farmland," the USDA said. “Typically, the prairie humidity and temperature vary widely, and drought occurs in isolated regions.
"However, 80% of the harvests in Alberta, for example, are of lower quality than in the previous year, which is mainly due to an unusually extensive drought."
The country's wheat exports will also be affected, with the USDA selling only 15.7 million tons to overseas buyers.If this were to be realized, it would be the smallest amount since 2004-05 when 14.8 million tons were exported.
Canada is one of the most important wheat suppliers in the world. In terms of wheat exports in 2020-21, it was in fourth place at 26.4 million tons, just a few thousand tons behind the US.
Global wheat stocks are scarce than they have been in years, which has caused the price of wheat to skyrocket in recent weeks.
Source
Hansa Terminhandel GmbH