May 17, 2007

Canada's corn farmers wait for good prices; statistics say Canada's corn stocks at record levels

Statistics Canada, in its quarterly grain stocks report, says bumper stock of corn is at record level of 2.5 million tonnes in Ontario, higher than the old record set in March last year.

The figures indicate commercial stocks are doing remarkably above the five-year average as the sector tries to match last year's record crop which boasted average yields in the 150 bushel per acre range.

At a national level, corn stocks were down by 4.3 percent.

Canada's major soybean producers Ontario and Quebec also reported large storage of soybeans on their farms at the end of the first quarter of 2007. The country's total soybean supply stood at 1.9 million tonnes or 15 percent above the 1.7 million tonnes in storage last year. The increase marked the third straight record for storage stocks of soybeans.

Despite a decline on-farm stocks of soybeans of 7.7 percent in Ontario and five percent in Quebec, commercial stocks rose to more than 33 percent to hit an all-time record of 870,000 tonnes.

Nationwide, stocks of all major grains declined year-over-year. Durum wheat supplies fell by 40 percent, barley by 30 percent, oats by 21 percent and dry field peas by almost 35 percent.

Total wheat stocks, excluding durum, dropped by six percent while canola plunged by 16 percent. The decline of wheat stocks was due to strong exports in the last years as global supplies dropped.

Stocks of feed barley and oats also declined sharply because of increased demand locally and in abroad. Higher prices also put more producers in a selling mood.

The grains stocks report is taken from a survey of 16,800 farmers who are asked to report their stocks of grain in storage on their farms. Commercial are determined by estimates from the Canadian Grain Commission and from grain elevators in eastern Canada.