Canadian Exports Down Sharply in August

Canadian crops exports plummeted in August amid tight domestic supplies.

A monthly export report from the Canadian Grain Commission (CGC) showed total exports for August at 2.24 million tonnes, down 38.5% from the same month a year earlier (see table below).

Barley shipments saw the sharpest decline, dropping 98.6% from August last year to just 2,400 tonnes. Canola exports were down 77% to 205,500 tonnes and wheat was down 22.2% to 1.43 million. The only crop to see an increase in August was durum, up almost 28% from the year-earlier level to 361,300 tonnes.

“There’s very little to sell. August is always a tricky month anyway. You’re usually pre-harvest and August tends to be a lower month anyway,” said Bruce Burnett, director of markets and weather for MarketsFarm.

Burnett attributed the fall in canola shipments specifically to combination of price rationing and tight supplies. Not only did China’s canola purchases fall almost 79% in August to 65,900 tonnes, but those going to Japan dropped hard as well, falling 58.7% to 83,000 tonnes.

Burnett stressed that exporters don’t want to take any big risks in August as they cannot rely on an early harvest.

Although Canada’s harvest was early this year, the expected sharp declines in cereal and oilseed production due to drought will create supply problems, he said.