Ag Canada Cuts Wheat Planting Estimate

Ag Canada say that falling world prices and dryness will see Canadian farmers cut wheat plantings to 23.227m acres from 25.009 acres last year.

Western Saskatchewan and eastern Alberta have received less than half of normal precipitation since September 1st and need generous spring rainfall to aid planting and promote wheat growth.

All wheat area was pegged at 23.895m acres by Ag Canada in January.

Canadian all wheat output in 2009 is now predicted at 23.95mmt down 16% from 28.61mmt last year, and more than 1mmt below it's January estimate, said Ag Canada.

With exports of 16.90mmt in 2009/10 and domestic usage of 8.47mmt, ending stocks are seen tightening from 6.80mmt to 5.40mmt, they say.

The production estimate is very similar to the 23.90mmt predicted by the Canadian Wheat Board last week, and reflects a similar drop in production being seen in the US.