September 20, 2007

 

Canada grain supplies data show downtrend

 

 

Supplies of major grains in Canada at the end of marketing year 2006/07 that ended July 31 were sharply lower, a survey of farmers shows.

 

Strong demand and robust farmer sales helped push down grain stocks across the board with the exception of flaxseed.

 

Soystocks declined to 130,000 tonnes from last year's record. At the end of December 2006, Ontario soystocks stood at 1.1 million tonnes.

 

Wheat supplies, including durum, dropped off by almost 30 percent on-year as export sales helped draw down stocks, Statistics Canada reported in a grain stocks report that coincided with the end of the grain marketing year.

 

Canada still had 5.5 million tonnes of wheat in storage on farms and in commercial storage facilities. The tight world supply and demand situation for wheat has resulted in strong export sales of Canadian wheat.

 

The demand for durum wheat has been especially strong, with supplies dropping by more than 62 per cent year on-year.

 

Feed grain supplies fell sharply. Total stocks of barley fell by almost 55 per cent. This is well below the five-year average and the result of a stellar demand for barley in the face of declining Prairie barley production in 2006.

 

Barley stocks fell to 1.5 million tonnes, well below the five-year July average of 2.4 million tonnes. Stocks took a hit in all three Prairie provinces.

 

Oat stocks too fell sharply by 36 per cent to just 556,000 tonnes. This was well below the five-year average of 704,000 tonnes as strong export markets help push grain sales.

 

Canola stocks dropped a more modest nine per cent to 1.8 million tonnes. This was well above the five-year average of 1.3 million tonnes for July 31. On farm stocks declined while those in commercial storage rose.

 

In Ontario, there were 1.2 million tonnes of grain corn still in storage while Quebec had 600,000 tonnes in storage. The stocks of corn remained above the five-year average, thanks to a big crop in 2006.

 

Barley stocks in Ontario fell to 80,000 tonnes while oat stocks were down to just 10,000 tonnes.

 

The information on the Canadian grain stock came from a survey Statistics Canada took of 17,300 farmers who were asked to report the amounts of grain and oilseed and special crops they had in storage on July 31.

 

Declining grain stocks have been an issue around the world for some time and concerns are growing. The perceived world shortage of grains prompted the European Union Agriculture Commissioner to urge European governments to allow more production of crops like wheat, oats and barley.