Canadian Rapeseed Production Under Threat

Canadian rapeseed production for 2009/10 is under threat from drought in Saskatchewan and western Manitoba, say StormX with some regions seeing less than 20% of normal precipitation during the month of May:

While the Canadian Press reports 80-90% of canola in Saskatchewan has been planted, most of the seeds are simply laying in ground as fears build that they will not germinate. Compounding the drought issues are the recent below normal temperatures, which have further prevented canola seeds from germinating. Unfortunately, cool, dry conditions look to continue over the next 7 to 10 days, possibly forcing some producers to let their fields lie fallow this summer, StormX say.

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Oil World forecast Canadian rapeseed production at 11 MMT this year, down 12% from 12.5 MMT in 2008.