Canada Farmers Seen Defying Oilseed Rally, Slashing Canola Acres
- Drought and pricey fertilizer to spur shift to wheat, soybeans
- Canola futures trade near all-time highs amid strong demand
A farmer holds a drought-stricken canola plant at a farm near Osler, Saskatchewan last July.
Photographer: Kayle Neis/BloombergThis article is for subscribers only.
Surging fertilizer costs and fear of drought are keeping Canadian farmers from planting more canola, despite record prices and growing demand.
Acres of the oilseed, used in everything from salad dressings to deep frying, will probably decline 2.7% from a year earlier to 21.9 million, according to a Bloomberg survey of eight analysts. The biggest drop since 2019 comes as canola futures are trading near all-time highs amid strong demand and disrupted trade flows from Russia’s invasion of Ukraine.