Canada’s wheat area hit its highest level since 2001 as farmers looked to benefit from strong prices and lower input requirements, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.
The total planted area for 2023 was 10.9 million hectares, an increase of 6.4% from 2022. The increase came at the expense of oats, rye, mixed grains and lentils, the FAS said.
Wheat area expansion was led by spring wheat with an increase of 8% to a total of 2.4 million hectares. Winter wheat increased 20% to 572,000 hectares.
Total production for 2023-24 is estimated at 35.8 million tonnes, up from 33.8 million tonnes last year.
Imports are expected to fall marginally in 2023-24 based on an expected larger volume of domestic wheat supply and the assumption that flour and wheat products will be produced in Canada, the FAS said.
In 2022-23, imports are expected to increase 20% to 477,000 tonnes while wheat imports for animal feed are forecast to fall more than 50% to 72,000 tonnes.
Most Canadian imports are wheat products and flour due to Canada’s restrictive varietal registration system, the FAS said. Year-to-date 88% of imports are wheat products or flour, representing the largest share in at least two decades.
Exports in 2023-24 are expected to grow on increased domestic supplies and expected production challenges elsewhere.
“The downside risks to this forecast include the potential for drought conditions that lower domestic wheat production,” the FAS said, also noting that forecasts in the report do not fully reflect recent trade disruptions at Black Sea ports.
Exports of both spring wheat and durum year-to-date so far in 2022-23 already have exceeded total exports in 2021-22, due to larger exportable supplies and the fluid movement of grain.