Canola crops in Canada, the world’s biggest exporter, are at risk of frost damage after planting was delayed and cool weather slowed development, Oil World said.
Canada’s production of canola, a variety of ****seed, may be about 15 million metric tons if plants are able to fully mature before the first frost arrives, the Hamburg-based researcher said in an e-mailed report today. Crop development is as much as two weeks behind normal, and recent cold weather may delay growth further. Some crops may not be finished maturing until mid-September, leaving them at risk of frost in areas of Saskatchewan, Alberta and Manitoba, according to the report.
“A frost in the fourth week of August would result in significant damage in the Canadian Prairies, as it would hit the canola crop before maturity is reached,” Oil World said. “The impact could be substantial as a large share of the seeds would remain green and thus be downgraded.”
Canola futures have dropped 17 percent this year on ICE Futures Canada in Winnipeg, while ****seed on NYSE Liffe in Paris is down 22 percent. The U.S. Department of Agriculture estimates global ****seed production will climb to 64.84 million tons in the 2013-14 season, the highest on record. The European Union is the world’s biggest producer, followed by Canada.
“European ****seed prices have been under considerable pressure in recent weeks owing to increasing new-crop arrivals and reports about higher-than-expected production in Ukraine and several EU member countries,” Oil World said.
Canada’s production of canola, a variety of ****seed, may be about 15 million metric tons if plants are able to fully mature before the first frost arrives, the Hamburg-based researcher said in an e-mailed report today. Crop development is as much as two weeks behind normal, and recent cold weather may delay growth further. Some crops may not be finished maturing until mid-September, leaving them at risk of frost in areas of Saskatchewan, Alberta and Manitoba, according to the report.
“A frost in the fourth week of August would result in significant damage in the Canadian Prairies, as it would hit the canola crop before maturity is reached,” Oil World said. “The impact could be substantial as a large share of the seeds would remain green and thus be downgraded.”
Canola futures have dropped 17 percent this year on ICE Futures Canada in Winnipeg, while ****seed on NYSE Liffe in Paris is down 22 percent. The U.S. Department of Agriculture estimates global ****seed production will climb to 64.84 million tons in the 2013-14 season, the highest on record. The European Union is the world’s biggest producer, followed by Canada.
“European ****seed prices have been under considerable pressure in recent weeks owing to increasing new-crop arrivals and reports about higher-than-expected production in Ukraine and several EU member countries,” Oil World said.