Canada, the world's fourth largest wheat exporter, is set to face a decline in wheat production this year due to drought.

According to a government report, in parts of the Prairie Provinces, namely Alberta, Manitoba and Saskatchewan wheat and canola production expected to decline.

Canada is also among the world's largest shippers for canola, from which vegetable oil is produced. According to Statistics Canada, the production of wheat this time is likely to be 29.5 million metric tons, which is the second lowest in the last 8 years and 14 percent down compared to last year. At the same time, the industry had expected a production of 30.4 million.

The Director of Markets in Market Farm said that this time, the supply shortage is expected from the large exporters. In North and South America, Europe and Australia, the crop production has also decreased due to bad weather this year. The production of spring wheat, which is used for baking, is estimated to be 14.5 percent lower, while the production of durum wheat, used for pasta production, is expected to be 26 percent lower this year.