Less Corn, More Soybean Acres in 2023 

Canadian producers will plant slightly less corn but more soybeans in 2023, according to new-crop supply-demand estimates released by Agriculture Canada Friday. 

Canadian corn area is forecast at 3.58 million acres, down about 1.2% down from last year’s historical high but still on par with the recent five-year average. Soybean area is seen at 5.63 million acres, up almost 7% on the year. 

Ag Canada partially attributed the expected decline in corn area to the strong competitiveness of other crops for acreage and high production costs. Acreage in eastern Canada is predicted at 3.16 million acres, down 2% from 2022-23, while acreage in Western Canada is predicted at 420,000 acres, up 3% from 2022-23, reflecting the expected acreage changes in Manitoba.  

Assuming average abandonment and yield potential, along with smaller acreage, Canadian corn production in 2023 is projected at 13.8 million tonnes, 5% lower than the 2022 level. The 2023-24 Chatham average corn price is projected at $290/tonne, lower than the record high of $320 forecasted for 2022-23, following the anticipated lower 2023-24 US corn price. 

Soy output is for 2023 is forecast up 230,000 tonnes or 3.5% from last year, to 6.77 million, and 220,000 above the five-year average. The 2023-24 simple average price for soybeans, track Chatham, is forecast to fall by $40/tonne, to $670, which is $106 above the five-year average of $564. 

Source: DePutter Publishing Ltd.

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