For 2011-12, the areas seeded to all crops, except rye and mixed grains, are forecast to rise due to the expected decline in area in summerfallow, assuming that a major portion of the area which was too wet to seed in western Canada in 2010 will be seeded. Normal precipitation, abandonment and crop quality are assumed. For all crops, yields are expected to return to trend levels. Total production of G&O in Canada is forecast to increase by about 7% to 66.0 million tonnes (Mt). Total supply is forecast to decrease slightly to 79.6 Mt, as lower carry-in stocks largely offset the rise in production. Exports are forecast to drop slightly, while total domestic use increases marginally. Carry-out stocks are forecast to decrease slightly and remain below the 10 year average. Prices are expected to decline, but remain historically high, under pressure by the strong Canadian dollar which is forecast to be near par with the US dollar. The main factors to watch are: the strength of Chinese demand, growing conditions across South America, planting intentions for the United States and spring moisture conditions.