Excess moisture has not only reduced the number of acres that were seeded, but it is now starting to factor into yield estimates.

"Until now, most people have been using average yields in their outlooks. I think we need to start looking at those a little more carefully in the next little while," says Chuck Penner of LeftField Commodity Research. "It's not like we have problems everywhere, but there are larger areas that have problems now with excess moisture."

The Statistics Canada acreage report released on Friday did not fully account for the wet fields that did not seeded in western Manitoba and eastern Saskatchewan, he notes. The estimates were based on a survey of farmers that ended on June 10th.

"That was before the crop insurance seeding deadlines had been bet, so farmers were still optimistic they were going to get them planted. That's why we have to shave some acres off," explains Penner. "We might be looking at about a half a million less in canola, half a million of wheat and then some from the other smaller crops, especially those that are grown in those areas."

According to the StatsCan report, wheat, barley and corn acres declined from last year, while farmers planted more soybeans, flax, dry beans and sunflowers. Canola and oat acres are similar to last year.

"There weren't really any big surprises. Wheat was down a little bit and canola was up a little bit, but that was pretty much as expected," says Penner. "The market is going to look at yield numbers now and how many acres need to be shaved off because of the unseeded areas."

The US Department of Agriculture will release its acreage estimates on Monday morning.