World grain market development

The first week of October, prices of wheat and corn on the world market has continued to evolve. The price of wheat has increased slightly, while the price of corn has decreased slightly, and then on the weekend to recover.

For wheat we`ve seen increased quality concerns, while corn futures contracts continued to be pressured by higher expected yields in the U.S.. Strong demand for the export of high quality wheat in Germany reduced the protein content of production in Canada and deterioration of crops in Argentina, led to an increase in futures with delivery in November in wheat. Also, the Chicago Stock Exchange, corn futures contracts have reached the lowest level recorded in September 2010 (173 U.S. dollars / ton).

Canada is expected to achieve a production of 33 million tons wheat, 22% more than in 2012. Barley production has also been estimated at 9.2 million tonnes, 18% higher than last year, while corn production is estimated at 12.9 million tons. The average yield of wheat is estimated at 3.23 tons / ha, 12.7% more than in 2012 and the average yield of barley is estimated at 3.67 tons / ha. Canadian rapeseed production is estimated at 15.96 million tons, 16% higher than in 2012 and with a high yield (31%). 

Canada is the largest producer and exporter of rapeseed and has a great influence on the development international market price.