Canola will be seeded to a record number of acres next spring, according to an early set of 2014 crop area estimates released by FarmLink Marketing Solutions.
The private market advisory agency is forecasting more than 22 million acres of canola will be seeded, up from just under 20 million this past spring.
"Just given what other markets are doing, and the ability for canola acres to come back into the rotation after taking a bit of a breather this year, I think it's safe to expect it will be a top choice next year," says chief analyst Brenda Tjaden Lepp.
In many cases, growers have already committed to seeding canola, she notes.
"There's growth in the specialty oils sector that has provided some pretty good returns and some early contracting. That's one thing about canola that's different than other crops is people who are selling the seed are actively marketing to growers during the previous growing season, so a lot of that area is locked up early," she explains.
Spring wheat acres are forecast to take a hit, dropping to 17.5 million from around 19 million in 2013. Tjaden Lepp notes the post-single desk shift to more mid-grade and winter wheat production is expected to continue, with the highest returns expected for soft white, CPS and winter wheat varieties.
Meanwhile, soybean and corn areas are projected to continue their expansion in the eastern prairies.
"With their steadily improving genetics and very deep investment, they're just going to keep marching forward and grabbing acres from all these other crops. Sunflowers, dry beans, rye, flax, spring wheat, canola, in Manitoba they're all losing acres, in some cases dramatically, to soybeans and corn," says Tjaden Lepp.
The private market advisory agency is forecasting more than 22 million acres of canola will be seeded, up from just under 20 million this past spring.
"Just given what other markets are doing, and the ability for canola acres to come back into the rotation after taking a bit of a breather this year, I think it's safe to expect it will be a top choice next year," says chief analyst Brenda Tjaden Lepp.
In many cases, growers have already committed to seeding canola, she notes.
"There's growth in the specialty oils sector that has provided some pretty good returns and some early contracting. That's one thing about canola that's different than other crops is people who are selling the seed are actively marketing to growers during the previous growing season, so a lot of that area is locked up early," she explains.
Spring wheat acres are forecast to take a hit, dropping to 17.5 million from around 19 million in 2013. Tjaden Lepp notes the post-single desk shift to more mid-grade and winter wheat production is expected to continue, with the highest returns expected for soft white, CPS and winter wheat varieties.
Meanwhile, soybean and corn areas are projected to continue their expansion in the eastern prairies.
"With their steadily improving genetics and very deep investment, they're just going to keep marching forward and grabbing acres from all these other crops. Sunflowers, dry beans, rye, flax, spring wheat, canola, in Manitoba they're all losing acres, in some cases dramatically, to soybeans and corn," says Tjaden Lepp.