Corn is becoming increasingly popular for Western Canadian agricultural producers, because of domestic and international demands. The corn supply in the entire nation had increased by three per cent from 2017-18. Imports in Canadian corn surged due to lower supplies of quality corn crops in Eastern Canada and a tight barley supply in Western Canada. Exports are expected to increase in 2019-2020, because of a higher demand and boosted trade with the European Union. But according to government statistics, Canada continues to face strong competition from South American countries entering the international export markets.
South America’s entry into the corn markets has pressured Canada, the United States and other countries to lower crop prices. World corn production for 2018-19 was the second-largest in history because of South America’s input, according to USDA. World carry-out stocks continue to drop, yet remain high because of great import forecasts for the EU, Mexico and Saudi Arabia.
In 2019-2020, the seeded area for corn in Canada had been expected to increase by five per cent from 2018-19 statistics. The weak Canadian dollar will continue to provide support to corn prices in Canada. Yet the Canadian dollar might also be recouping against its American counterpart, because the Canadian economy remains strong in an unstable world, according to a Reuters poll as reported by Fergal Smith in the Financial Post earlier this month.
Environmental conditions in Canada have also supported corn’s feasibility as a lucrative crop. The 2019 spring in the United States had been wet and cold. The soggy conditions delayed crop sowing and growth, raising the potential for below trend yields in the United States. In Canada, dry conditions have persisted in Saskatchewan and the rest of the prairie provinces. Seeding rates for corn have been well about the five-year average in the nation.
Although Canada is ahead of the game in comparison to the United States in the corn markets, this country still has to compete with agricultural producers and exporters from Argentina, Brazil and Russia. Yet, Statistics Canada reported that corn for grain acreage has been up at 1.9 per cent from 2018 to 3.7 million acres planted in 2019. According to a report by Statistics Canada, producers were expected to grow more corn, peas, lentils and oats in 2019, but plant less wheat, canola and soybeans this year.