Despite a larger planted area, Canada’s wheat production in 2023-24 dropped 7% from the previous year to 31.95 million tonnes, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA).
The FAS said severely low soil moisture in Alberta and Saskatchewan reduced yields.
Total wheat milled is expected to align with recent years, based on steady supply and demand. Animal feed demand is forecast to be slightly lower than the previous year.
The FAS said that even with solid exports in the first half of 2023-24, total exports are expected to drop 9% year-over-year in lower exportable supplies. Exports of non-durum wheat increased by 11% over the previous year.
China was the largest buyer of non-durum Canadian wheat in the first four months of 2023-24, purchasing 944,400 tonnes, 31% less than the previous year’s time frame. Indonesia was the second largest buyer of non-durum wheat, purchasing 700,600 tonnes, a 48% increase from a year earlier.
Canada and Saudi Arabia restored diplomatic ties in May 2023. The FAS said this led to a rebound in durum wheat exports to Saudi Arabia. Wheat exports to India across the Arabian Sea from Saudi Arabia increased in 2023. Imports have increased 26% over the same period in the previous year on lower domestic supplies. Imports are forecasted to end the marketing year up 5% from 2022 to 23. The FAS said nearly 100% of durum and non-durum wheat imports year-to-date have come from the United States.