Drought-like conditions on the Canadian Prairies may decrease crop yields this fall but farmers who manage to grow a crop, or have grain in the bins, may see some pretty decent prices.
Weather conditions in a number of agricultural regions around the globe could put upward pressure on commodity prices.
The United States experienced record rainfall averaging 37.68 inches in the last 12 months. Eighteen states in the midwestern and eastern farm belt have around 124 per cent of normal rainfall.
The rain has delayed seeding with soggy fields and flash flooding.
Key farm states impacted include Iowa, Indiana, Ohio, Kansas, Michigan, and Nebraska while drought still affects parts of Texas, California and the east coast near Florida.
These conditions will affect yields and which crops are planted.
In Australia, a major competitor of Canada for Asian grain markets, severe drought has forced the country to import wheat for the first time in 67 years.
Two back-to-back years of drought are blamed for that purchase from Canada. Farmers down under grow about three per cent of world wheat crop, exporting almost one-third of their harvest.
Small shifts in production can change prices sharply.
Crop conditions appear good in most of Europe, Northern Africa, Russia and former Soviet Union countries of Ukraine and Kazakhstan, according to the U.S. Department of Agriculture.
India, a significant market for Canadian lentils, peas and chickpeas until it imposed import tariffs, is a different story.
The monsoon season has not delivered usual amounts of rain for crops with pre-monsoon rains dropped one-quarter less than usual.
While the India Meteorological Service predicts 96 per cent of normal monsoon rains, one-third of the country is experiencing abnormal to severe drought.
South American crop conditions are good but wet weather has delayed harvest of summer grains and oilseeds in Argentina.
Drought impacted rice crops in the Philippines while China has good growing conditions.
Ron Walter can be reached at ronjoy@sasktel.net
