OTTAWA, ONTARIO, CANADA — Canada’s total production of oilseeds in the 2021-22 marketing year is expected to increase 6% from last year primarily due to an increase in area and yield recovery of canola, according to a report from the US Department of Agriculture’s Foreign Agricultural Service (FAS).

Total oilseed production, which includes canola, soybeans and sunflower seeds, is expected to reach 26.58 million tonnes. Soybean production is forecast to increase marginally and remains a third of the size of canola production.

Looking toward the spring planting season, FAS said significant precipitation is needed in the soybean-growing areas of Manitoba and the southeastern canola-growing area of Saskatchewan.

Total beginning stocks of canola, soybeans, and sunflower seeds in 2021-22 are forecast to fall 89% below the previous year. Beginning stocks of canola are projected down to around 700,000 tonnes, 2.4 million tonnes below the previous year, on lower production and very strong demand in the preceding year.

Total oilseed exports in 2021-22 are forecast to fall 7% on smaller exportable supplies of canola. Total oilseed exports are forecast to finish 2020-21 up from the previous year on strong canola demand from the E.U. and more soybean exports going to China, Algeria, and the United Kingdom, FAS said.

“Canola seed exports to China are strong despite China continuing to block Canada’s two largest canola exporters, Richardson International and Viterra, and China maintaining a restrictive dockage requirement of one percent on its canola imports,” FAS said. “There is currently no indication that these restrictions will change in 2021-22.”

Total canola, soybean, and sunflower oil production in 2021-22 is forecast to fall on reduced processing of canola seed due to lower seed supply and weaker crush margins compared to the current marketing year.