Western Canada's ethanol and hog industry to compete for wheat this year

The competition is expected as both the hog industry and the ethanol sector prefer Canada Prairie Spring or winter wheats, said Glenn Lennox, a wheat analyst with the Market Analysis Branch of Agriculture and Agri-Food Canada.

Production of CPS wheat in Western Canada during the 2005-06 season totaled 1.42 million tonnes while winter wheat output in the same region was 469,000 tonnes, Lennox said.

During 2005-06 industrial wheat usage was at 160,000 tonnes, most being used by the ethanol industries. However, in 2006-07 with two new ethanol plants coming on-line in Western Canada, wheat usage is expected to top 400,000 tonnes.

Canada's hog industry consumes between 3.0 million to 4.0 million tonnes of wheat yearly, Lennox said.

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