February 22, 2013

Canada to reach highest volume for wheat exports

Canada's wheat exports may be reaching its biggest volume in six years following a good harvest in the country.

A projected 26% decline in wheat production in Australia will give Canadian supplies a larger foothold in Southeast Asia, a federal agriculture analyst said.

Agriculture and Agri-Food Canada (AAFC) predicts that Canada will export 18.75 million tonnes of all wheat in the current 2012-13 crop year, the highest level since 2006-07. Much of that volume would have to move in the second half of the crop marketing year, which runs from August 1 through July 31.

In the first five months through December, Canada has exported nearly 7.6 million tonnes of all wheat, up a modest 6% over year, according to Canadian Grain Commission data. The all-wheat category includes spring wheat, durum and winter wheat.

Traditional buyers of Canadian supplies such as Indonesia, Japan, Philippines, South Korea, Malaysia and Sri Lanka have also bought more Canadian wheat over year.

The brisk Canadian export pace coincides with the first year of an open market in Western Canada, after the federal government passed a law that ended the Canadian Wheat Board's marketing monopoly on August 1.