Canada’s Big Crop Prospects Raise Fears About Grain-Handling

Farmers are growing the biggest Canadian harvests of wheat and canola in several years, despite stormy summer weather, a Reuters survey of 14 traders and analysts showed ahead of the government’s first production report of the year. Expectations for big crops, due to mostly favorable growing conditions since spring, have raised concerns about whether the grain-handling system and railways will have ample capacity to move them smoothly. The survey forecast, on average, all-wheat production at 30.4 million metric tons, the largest crop in three years and up +10% from a year ago. The increase is mainly due to big output of durum. Canola production is on track for 18.1 million metric tons, the second-largest Canadian harvest ever, and up +5% year over year, traders expect. (Source: Reuters)