Agriculture and AgriFood Canada is predicting total crop production in Canada will increase in the 2015-16 crop year, largely due to higher seeded area for corn and soybeans.
The department's April outlook for principal field crops forecasts a 3 per cent increase in spring wheat area seeded but a 33 per cent decrease in winter wheat.
It's calling for a drop in supply of 9 per cent, based on lower 2015-16 production and lower carry-in stocks.
Agriculture and AgriFood analysts expect average crop year producer wheat prices to be higher than 2014-15 because of lower global supply and the forecast weaker Canadian dollar.
For corn, the outlook expects seeded area to increase by 6 per cent because of higher prices and residual area in Eastern Canada not seeded to winter wheat last fall.
Corn production is expected to increase by 6 per cent as well - but because of lower carry-in stocks, total supply will remain unchanged from 2014-15.
The department expects Chatham corn prices to increase in 2015-16 because of a projected increase in U-S corn futures and support from the weak Canadian dollar.
The principal field crops outlook is forecasting a 4 per cent increase in soybean seeded area to a record 2 point 35 million hectares.
Canadian production is now expected to go up 10 per cent, leading to an overall increase in supply of 8 per cent.
The outlook's average Canadian soybean prices are expected to be lower under pressure from lower U-S and world prices.
