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Highlights
Situation report–May 2007

• Total stocks of grains and oilseeds at March 31, 2007 were lower than a year-earlier except for flaxseed, soybeans and sunflower seed according to the results of Statistics Canada’s survey of 17,100 farmers.

• In Western Canada, seeding progress varied. Planting was ahead of normal in Manitoba and southern Saskatchewan but behind in Alberta and northeastern Saskatchewan due to wet conditions. Cold and wet weather limited seeding in the Peace River and there were expectations that some crop land might not be planted at all.

• In Ontario, corn planting progressed rapidly, with over 85% of the fields planted by May 9 allowing soybean seeding to begin early and possibly maximize yields.  The Ontario Wheat Producers’ Marketing Board estimated that an unusually high 10-15% of the Ontario winter wheat crop could be lost this spring due to winterkill.

• In the United States, planting progressed ahead of 2006 and well ahead of the five-year average despite rains in the western Corn Belt that slowed fieldwork early in the month.  However, a lack of moisture was causing concern in parts of the central and eastern Corn Belts by month-end.

• Agricore-United accepted the bid of Saskatchewan Wheat Pool for its shares, making the company the largest grain handler in Canada.

• Canola prices were high, pushed up by projections of tight world oilseed stocks at the end of 2007/2008, rising vegetable oil prices and by expectations of higher biodiesel demand.   The high prices, combined with the strong Canadian dollar and high ocean freight rates slowed export sales although there was mid-month talk of sales to China and Mexico.  Cool and wet weather in Alberta started traders discussing reductions in seeded area and rallied prices late in May.