Gain Report: Oilseeds and Products Canada 2008

Total Canadian oilseed production during 2008/2009 is forecast to increase to 12.5 MMT from 11.5 million metric tons produced a year earlier. This increase is due to an 8% increase in canola production and a 12% increase in soybean production.

Acreage in canola and soybeans is only expected to increase .05% and 2.4%, respectively, from previous year’s levels. The forecasted increase in production is attributed to a return to average yields in 2008/2009.

Low carry-in stock in canola and in soybeans may off-set production increases, resulting in supplies similar to 2007/2008 levels.

In soybean production, the decrease in demand from the Canadian livestock industry will result in an increase in domestic crush, while exports are predicted to fall from the previous year’s high levels. This should help increase stocks.

In canola, strong world food and biofuel demand will draw down stocks as exports and use in crush are predicted to increase.