Agriculture and Agri-Food Canada
Bi-weekly Bulletin January 12, 2007 Volume 20 Number 1

Production of grains, oilseeds, pulses and special crops in Canada is forecast to increase to 72 million tonnes (Mt) in 2007, from 69 Mt in 2006, due to higher area and yields. However the total supply is forecast to decline due to lower carry-in stocks. Although exports are projected to decrease, food and industrial use is forecast to increase significantly due to the strong demand for biofuel. Carry-out stocks are forecast to decrease slightly. World wheat prices are expected to decrease as US and Australian growing conditions return to normal. Canadian prices will be moderately supported by the weakening Canadian dollar World corn and oilseed prices are expected to increase on support from the growing biofuel sector in the United States (US) and the European Union (EU). The market outlook is very tentative due to uncertainty regarding global supply and demand conditions. Unusual weather patterns or policy changes in any of the major importing or exporting countries could significantly alter the outlook.

Full report: http://www.seedquest.com/News/releases/2007/pdf/18183.pdf