Major wheat and canola growing regions in the Western Canadian province of Alberta on Friday were hit by frost, which likely killed immature crops and made their quality inferior; but at the same time a good fraction of the nation’s crop growing areas were spared.
Environment Canada said that the killing frost would repeat and intimidate to make market jitters increase.
Although, the frost was mainly anticipated, it helped up ICE Canada for canola futures by 1.4% early on Friday.
Chicago’s soybean, oat and wheat futures surged up by 2.2, 3.4 and 1.7 correspondingly.
Chilly frosts reached Alberta’s north-central regions that in general produce 1/6th of Canada’s canola.
Stuart McMillan, crop and weather Analyst at the Canadian Wheat Board, which markets Western Canada’s wheat and barley said that frost destroyed a majority of crops, but many of the crops absorbing temperature had matured to endure the cold.
He said, ‘I don’t want to sound the alarm bells to all the customers yet because there’s still going to be reasonable number of (high-quality) red springs and durum produced here’.
Murray Hartman, oilseed Specialist for the Alberta Government said that canola crops in worst hit areas were less susceptible to get destroyed.