May 12, 2010

Canada's grain stocks drop almost 12% in 2009

The latest data from Statistics Canada shows national stocks of major crops such as rapeseed and wheat nearly fell by 12% over the last year.

The Principal Field Crop Stocks Report shows both barley and oat supplies were also down. Meanwhile, flaxseed, peas, durum and soy saw increased supplies. It looks like stocks are headed in the right direction for farmers hoping for higher prices.

"It's fairly positive for rapeseed prices. At least we're headed in the right direction," said Fred Oleson, chief of the Market Analysis Division with Agriculture and Agri-Food Canada.

The outlook for wheat is still bearish. But Oleson says even though we have lower stocks in Canada, it may not have a major impact at the world level.

According to StatsCan estimates in June 2008, 25.1 million acres of wheat were planted, 15.8 million acres for rapeseed, 2.97 million acres for corn, and 2.99 million acres for soy.