(Bloomberg) -- The historic surge in wheat prices is expected to spur Canadian farmers to sow more acres.
Acres of spring wheat in Canada, one of the world's top exporters, could rise 2% to 3% in 2022 as soaring prices encourage growers to shift acres from oats, pulses and durum, said Neil Townsend, chief market analyst at FarmLink in Winnipeg, Manitoba.
Russia's invasion of Ukraine is hindering shipments from one of the world's vital breadbaskets, leaving grain importers scouring for supplies elsewhere.
“The spring wheat market is on a tear,” said Stephen Vandervalk, vice president of Alberta for the Western Canadian Wheat Growers. “There's no doubt that this price increase that's happening now will affect seeding.”
There's Not Enough Extra Canadian Wheat to Fill Global Shortfall
The potential boost in wheat acreage comes amid lingering concerns about dry conditions in Canada. Drought zapped as much of 40% of Western Canada's grain output last year and swaths of Alberta and Saskatchewan remain under extreme drought conditions, according to the Canadian Drought Monitor.
Stockpiles are insufficient to support additional wheat exports from Canada until growers harvest a new crop. While parts of major growing areas remain dry, spring wheat is able to handle drought better than other crops, Vandervalk said.
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