Canadian production of soybean to increase 18%

Canadian production of soybean is to increase 18% or 1.1 million mt to 7.7 million mt in the 2017/2018 harvest year, according to government data, as an increase in harvest area will offset a fall in expected yields.

The harvest area is expected to reach 2.94 million hectares, up a third from the 2.21 million hectares planted in 2016/2017, according to Canada’ principal feed crop outlook released Monday by Agriculture and Agrifood Canada.

However, yields are expected to fall to 2.63 tonnes per hectare compared to 2.97 tonnes per hectare a year earlier.

“Soybeans are forecast to be the third largest crop exported from Canada after wheat ex-durum and canola with buyers widely dispersed by country,” the report said.

Exports are forecast to rise sharply to a record of 5.6 million mt versus 4.5 million mt a year earlier and a five-year average of 3.8 million mt, meaning the country could overtake Paraguay as the world’s fourth biggest exporter of beans after Brazil, the US and Argentina.

The rise comes despite a fall in expected farm prices, with Canada estimating prices to fall 9% to C$410/mt ($319/mt, $8.68/bu).

“The price outlook has been pressured by lower US farmgate prices in the soybean complex and the stronger Canadian dollar,” the report said.