May 15, 2008

Ontario reports largest corn stock ever

Ontario's on-farm corn stocks have reached their highest level amid mounting prices and strong demand for corn, Statistics Canada reported.

Corn stock stood at 2.7 million tonnes, up 18 percent from the 2.5 million tonne record set in March 2006.

Quebec farmers also reported a huge increase in corn storage with 1.7 million tonnes, a 41-percent increase.

At the national level, corn in store on-farm and at commercial elevators reached 6 million tonnes.

Statistics Canada said the huge stocks resulted from record imports and strong production in 2007.

Don Kenny, vice-president of the Ontario Corn Producers' Association, said last summer's drought in western Ontario prompted a lot of the industry trade to book US corn in anticipation of Ontario corn shortage.

However, the shortage did not happen as the yield was better than forecast, Kenny added.

Meanwhile, corn acres in Ontario are projected to drop this year in part due to the large winter wheat crop which has come through the winter in good shape.

While corn stocks rose, nearly all other grain stocks tumbled on-year. At the national level stocks of wheat on farms and in commercial storage fell sharply compared to year ago level.