Australia - Wheat production for 2008/09 is forecast at 21.6 MMT, down on the previous estimate. This decrease is driven purely by a reduction in area, with yield forecasts remaining unchanged. Crop losses in south western NSW, combined with some crops cut early for hay instead of harvested for grain, has resulted in losses of around 500,000 hectares. Post deems it too early to forecast the impact of frost events in Western Australia. Forecast barley production for 2008/09 remains unchanged at 7.875 MMT, with adverse weather conditions not expected to have the same impact on barley as has been the case for wheat.

Russia - Post has revised upward its total grain production forecast by 3.7 MMT to 96.9 MMT based on the Russia's official data on harvest progress. The wheat production forecast is 58.5 MMT, a 2.3 MMT increase from the September forecast. Barley production forecast is increased by 2.3 MMT to 20.5 MMT. Corn production forecast remains 5.6 MMT. Post forecasts grain exports at 17.5 MMT, an increase of 2.6 MMT from September forecast.

More on the web at www.fas.usda.gov.

Canada (from Statistics Canada) - Canola production is expected to rise to 10.9 million tons, 1.4 million tons above the previous high of 9.5 million tons reported in 2007. This exceeds the pre-harvest July estimate by 495 000 tons Production should increase mainly as a result of an above-average yield of 30.6 bushels per acre. Farmers expect to harvest 22.2 million tons of wheat excluding durum, up 35.6% from 16.4 million tons in 2007 and easily exceeding the previous five-year average (2003 to 2007) production of 19.4 million tons A 15.0% increase in harvested area and a yield of 42.8 bushels per acre account for this increase. Total soybean production is expected to reach 3.2 million tons, just short of the highest level of 3.5 million tons produced in 2006. Production should rise in both Quebec and Ontario, where 90% of soybeans are grown.