Canada lowers annual corn yield forecast

Canada lowers annual production forecast

2014-03-27 09:28 |
source: China Grain Network |

ottawa, March 26: According to the outlook report of major field crops in March released by the Canadian Department of Agriculture and Agricultural Food (AAFC), Canada's corn output in 2014/15 (August to July of the following year) will be lower than that of the previous year due to the expected decline in sown area and average yield.

The report shows that Canada's corn production in 2014/15 is expected to be 12.7 million tons, lower than the earlier forecast of 13.1 million tons and 11% lower than the 14.194 million tons in 2013/14. Canada's corn harvest area in 2014/15 is expected to be 1.385 million hectares, which is the same as the previous forecast and 6% lower than the previous year's 1.48 million hectares. Corn yield per hectare is expected to be 9.17 tons per hectare in 2014/15, down from 9.59 tons in the previous year. However, due to the record 3.4 million tons of inventory, Canada's corn supply will still reach 16.5 million tons in 2014/15, basically maintaining the level of the previous year.

Canada's corn exports in 2014/15 are expected to be 1 million tons, the same as the previous forecast and the same as the previous year's exports. Domestic use is expected to be 12.4 million tons, down from an earlier forecast of 12.5 million tons, but still up 2 per cent from 12.139 million tons the previous year, mainly due to growth in ethanol production, industrial use and livestock farming.

Canadian corn ending stocks in 2014/15 are expected to drop to 3.1 million tons, lower than the earlier forecast of 3.4 million tons and 9 percentage points lower than the previous year's 3.4 million tons, but it is still a very high inventory level.

Canadian corn prices are expected to fall to C $140 to C $170 per ton in 2014/15, down from C $155-185 per ton in the previous year, mainly due to abundant global supply, especially in North America. (Source: Boyi Master)