Canada Expects Smaller Canola Harvest

Canadian farmers expect to harvest 9% less canola due to reduced plantings, according to a government report released on Wednesday amid a diplomatic dispute between Canada and China, the top importer of the crop.

According toReuters, the dispute, centered on the arrest of a Chinese executive in Canada and China’s decision to detain two Canadians, has curbed canola export sales since early this year and weakened prices just as farmers were deciding what to plant this spring.

Dry conditions threatened crops earlier, but timely rains in June and July boosted crop prospects, Statistics Canada said in its first production forecast.