Rain delays wheat and canola harvest in Canada

Source:  Reuters

Prolonged rainfall is significantly delaying harvest in Canada’s western provinces, where most of the country’s spring wheat, durum and canola are grown. A crop that had recently been seen as potentially one of the best in years now risks losing part of its quality and value.

As of September 7, only 27% of the crop had been harvested in Saskatchewan, compared with the five-year average of 58%. In Alberta, harvest was about 21% complete as of September 8, versus the five-year average of 43.5%.

The biggest risks concern wheat and durum, which may lose grade after prolonged exposure to wet field conditions. Rain increases the risk of sprouting, mold and fungal damage, potentially reducing supplies of high-quality milling wheat.

Canola harvesting is also progressing much more slowly than usual. By mid-September, many farmers had yet to finish wheat harvest and had only partly moved on to canola, increasing the risks of crop losses and weaker farm economics.

Farmers estimate that downgrading wheat from No. 1 to No. 2 or No. 3 could reduce prices by $0.30–1 per bushel. For large farms, this could translate into losses of more than C$100 thsd, while further rainfall would increase risks for both wheat and canola.

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