May 2, 2023 By Farm Credit Canada
Just past halfway in the 22-23 marketing year for Canada’s cash crops, global and future prices have weakened, softening most of the projected prices since our January outlook. Durum bids have also fallen.
With prices softening, Farm Credit Canada (FCC) Economics projects eastern crops (winter wheat, corn and soybeans) to remain profitable throughout the outlook period. However, margins per acre will fall considerably year-over-year and will likely be less than the five-year average. That average was boosted by two excellent years of profitability in 2021 and 2022, when commodity prices were at historic highs and input costs had not yet peaked.
In Western Canada, expected fall revenues will boost strong profitability for canola, durum wheat and red lentils, with yellow peas, barley, and spring wheat margins still positive but closer to break-even. Year-over-year margins will fall in 2023, but only from the last three years of historic highs, and they’ll remain well above the five-year average. |READ MORE