Canada Markets

The Canadian Grain Commission's Exports of Canadian Grain and Wheat Flour report indicates a favorable start to the Canadian grain export program for 2014/15. Total exports from licensed facilities of all grains totaled 3.561 million metric tonnes, up 74% or 1.518 mmt from 2013.

Western Canada's ample supplies combined with aggressive late-season rail movement paved the way for August shipping, with 61% of the volume moving through Pacific ports, with the ports on the west coast handling almost a million tonnes more than August 2013.

As seen on the attached chart, wheat exports totaled 1.9 mmt in August, 47% ahead of last year and 68% above the five-year average for August. In total, there were shipments made to 12 countries in August where no volume was shipped in 2013. The top three customers for the month were Bangladesh (158,700 metric tonnes), Indonesia (156,200 mt) and Columbia (138,800 mt). Of the 39 destinations wheat was shipped to, volumes grew year over year in 25, or 64%, of the destinations.

Durum exports totaled 593,900 mt, 59% above August 2013 and 90% above the five year average. Of this volume, 202,900 mt or 34% of the total was shipped to Algeria, where no shipments were made in August 2013.

The CGC reported 85,100 mt of oat exports in August, up 122% from last year, although 22% below the five-year average. Almost all of the volume was shipped to the U.S., with 85% shipped direct from prairie elevators. The September WASDE report estimated U.S. import demand at 1.5 mmt, up 3% from 2013/14. At the same time, this week's USDA Small Grains Summary revised the U.S. oat crop lower, which may open the door to increased volumes. Canada will be challenged, however, with a late harvest and a lack of desirable quality this season, while a lack of improvement in north-south rail freight has traders gun shy to place sales.

At 560,400 mt, canola exports in August were 150% above August 2013 and 44% above the five-year average. Gains over last year were largely linked to last year's tight stock situation and late start to harvest. Close to 73% of the volume was shipped to China and Japan, with Japan in for a steady volume and China increasing their volume by 310% from August 2013.

Dry pea movement increased by just over 200,000 mt from August 2013 to 256,100 mt. 122,600 mt was shipped to India, up from 13,300 mt in August 2013.

Cliff Jamieson can be reached at cliff.jamieson@dtn.com

Follow Cliff Jamieson on Twitter @CliffJamieson

(ES)

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