Canada 2009-10 canola seed exports to China likely lower

Canada's canola seeds exports to China in the 2009-10 crop year is likely to be slightly lower than 2008-09 on higher prices, said an executive with Canola Council of Canada Friday (July 10).

Canada's canola seeds exports to China in the 2008-09 crop year starting from September is estimated at a bit higher than 2 million tonnes, said Wang Ruojun, the council's China representative, during an oilseed conference.

Canola seeds prices in Canada are likely to rise 5 percent to C$450 (US$386.74)-C$550 (US$472.67) a tonne range in the 2009-10 crop year on lower stocks, Wang said.

The ending stocks of Canadian canola seeds are expected to drop sharply, due partly to lower output, said Wang.

The output in 2009-10 is projected to fall to 10.2 million tonnes from a record high of 12.26 million tonnes in 2008-09 due to a 7 percent decline in acreage and lower yield, Wang said.

But high-ending stocks in 2008-09 will result in the canola seeds supply to fall by only 9 percent, he added.

US$1 = CAD1.16 (July 10, 2009)