Situation Report — July 2012

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Canadian farmers report planting record areas of canola,corn and soybeans

As of June 7, 2012, Prairie farmers had either planted, or intended to plant, a record area of canola and larger areas of wheat, dry field peas and barley, reports Statistics Canada in the June 27th release of Field Crop Reporting Series (Stocks of Principal Field Crops). Farmers in Manitoba and Ontario reported seeding record areas of corn and soybeans.

The June Farm Survey collects information on crop seeded areas in Canada. In 2012, the survey was conducted with approximately 25,000 farmers from May 28 to June 7. Farmers were asked to report their seeded areas of grain, oilseeds and special crops.

Overall, the area seeded to field crops in 2012 returned to levels seen prior to the 2011 floods in parts of Manitoba and Saskatchewan. Farmers in these two provinces reported significantly fewer summerfallow acres.

Producers in the Prairies reported a record area of 21.0 million acres seeded in canola, up by 2.4 million acres or 12.8%. This was the sixth consecutive annual record for canola area.

Farmers reported 23.8 million acres seeded in wheat, up by 2.3 million acres or 10.9% from 2011. This increase was mainly a result of higher acreage seeded in durum and hard red spring wheat.

For a second consecutive year, Prairie farmers reported an increase in durum. The area of acres seeded in durum increased 17.3% to 4.7 million acres in 2012 from 4.0 million acres in 2011.

The area of hard red spring wheat increased 6.4% to 15.1 million acres. Saskatchewan accounted for most of this increase, with 845,000 additional acres seeded to hard red spring wheat.

Prairie farmers reported seeding 6.9 million acres of barley in 2012, compared with 6.0 million acres in 2011.

The area planted in dry field peas on the Prairies was reported at 3.5 million acres, up 50.1% from 2.3 million acres in 2011. Increases were seen in all three Prairie provinces with the most significant increase in Saskatchewan, where the reported acreage was up 61.7% to 2.5 million acres.

Farmers in Manitoba reported seeding 52.2% more soybean area in 2012, at 875,000 acres, which exceeded the record of 575,000 acres set in 2011.

In Ontario, soybean area increased by 210,000 acres, or 8.6%, to 2.7 million acres. This area surpassed the record area of 2.4 million acres set in 2010 and equaled in 2011.

Meanwhile, Quebec farmers reported a slight decrease in soybean area of 19,800 acres, or 2.7%, to 721,500 acres.

Ontario farmers reported seeding 2.3 million acres of corn for grain in 2012. This area exceeded the record of 2.2 million acres set in 1981.

Quebec farmers planted 1.0 million acres of corn for grain, up 13.4% from the 2011 area of 882,200 acres.

Manitoba farmers reported a record corn for grain area of 300,000 acres, up 66.7% from 2011. The previous record of 225,000 acres was set in 1981.

USDA reports decreased global wheat, coarse grain and oilseed supplies

The United States Department of Agriculture released the World Agriculture Supply and Demand Estimates on July 11 and reported a reduction of 4.6 million metric tonnes for global wheat supplies for 2012/13.

Supplies of global coarse grains for 2012/13 are lowered 43.2 million metric tonnes, reflecting the 41.9 million metric tonnes projected reduction in the U.S. corn crop.

Global oilseed production for 2012/13 is projected at 422.5 million metric tonnes, down 4.6 million from the previous estimates released in June, mostly due to lower projected production of soybeans in the U.S.