1998 Canadian crop conditions vary significantly across the prairies, but in general crops are more advanced than last year due to early seeding. Moisture conditions in southwestern Alberta and Manitoba are good, while crops in other regions have been under stress because of dry conditions. Crop prospects recently improved due to significant rainfall, however, dry pockets remain in northwestern Saskatchewan and the Peace River area. Slightly below trend yields are expected for Saskatchewan and Alberta, while yields in Manitoba are expected to be near trend levels.
Conditions are dry in southwestern Ontario, but the potential still exists for trend yields.
Spring wheat supplies are expected to be extremely tight, with exports forecast to decrease substantially. Exports of durum and barley are also expected to decline, while canola exports are forecast to be similar to 1997-98. Canadian grains and oilseeds prices are generally expected to decline, due to rising world supplies and lower prices. Feed use is expected to decline but remain historically strong. Domestic feed barley use is forecast to decrease, largely due to lower livestock numbers.