Canada's wheat, canola production fall below expectations - wheat down by over a quarter

Canadian farmers are on course to produce less wheat and canola than expected, according to Statistics Canada's first report on this year's harvest. Statscan, using a farmer survey, pegged the 2014/15 all-wheat crop at 27.7 million tonnes, down 26 per cent from last year's record harvest and below the average trade expectation of 28.5 million tonnes. Canada is projected to be the fourth-largest wheat exporter this year. Canola production in the biggest global exporting country looked set to reach 13.9 million tonnes, a drop of 23 per cent from last year and less than the average trade forecast of 14.5 million tonnes. "I think the trade is going to view this report as fairly friendly [to price]," said Dave Reimann, market analyst for Cargill Ltd.'s grain marketing services division. "The canola number is going to jump out a little bit because we're looking at a tightening supply situation versus last year, and this turns the screw one more turn."