Tough news to swallow this year for the Canadian small grain farmers, yields on Canola and Wheat are down around 26% after last year’s high. This will cause a lot of Canadian farmers to pinch their pockets until next year. Canada is a big source of ag equipment business, and could hurt an already struggling year for ag equipment producers.
Obviously the prices of Canola will begin inching up. If farmers were prepared, they would’ve waited to lock in their prices. Usually that is not the case. Most farmers who lock in, lock in fairly early a decent percent of their crop.
I will be able to provide a better update on the situation come the end of September when I visit Canada for two weeks.
Here is the link to the article: Canadian Crop Yields Down for 2014.