Canadian
wheat production in 2022
is near a record high

Canadian wheat production in 2022 is near a record high

Improved Weather

Thanks to improved weather, Canada harvested 33.8 million tonnes of wheat in 2020/23 (August to July), a 51.5 per cent increase over the previous year, which would make Canada the leading exporter in the Western Hemisphere, according to Statistics Canada. The higher yields were partly due to an increase in the area sown, as wheat supplies were tight and prices were attractive during the planting period.

Exports To Be 23.5 Million Tonnes

Canada's wheat exports are also expected to surge in 2022/23 due to a large increase in wheat production. Agriculture and Agri-Food Canada expects Canadian wheat exports to be 23.5 million tonnes in 2022/23, up from 15.1 million tonnes in the previous year.

While the outlook for Canadian production looks strong, wheat production in some areas is a concern. Statistics Canada this month cut its wheat production estimate by almost 1 million tonnes due to dry weather in parts of the Prairies, but this will not significantly affect Canada's wheat export outlook as global demand for Canadian wheat is likely to increase.

Weather problems have dimmed production prospects in Argentina and the US, the main wheat suppliers to Latin American and East Asian markets. In the United States, winter wheat conditions are worrying because of unusually dry conditions across much of the central and southern Great Plains. As of Nov. 29, only 34% of U.S. winter wheat was good, down from 44% a year earlier.

In addition, U.S. wheat export sales have declined. The U.S. Department of Agriculture said U.S. 2022/23 wheat export sales totaled 14.1 million tons as of Dec. 8, down 7 percent from a year earlier.