Canada Markets

A Look at Canada's April Wheat Exports

Cliff Jamieson
By  Cliff Jamieson , Canadian Grains Analyst
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While Canada's wheat exports to China are shown to slow in April, cumulative crop-year exports to China (August-to-April) at 1.5244 million metric tons (black line) are up 72% from 2017-18 (orange area) and 171% higher than the three-year average (grey area). (DTN graphic by Cliff Jamieson)

The Canadian Grain Commission's Exports of Canadian grain and wheat flour report for April shows the country's wheat exports at 1.6398 million metric tons for April, up 16.6% from the previous month and up 12.2% from April 2018. Crop-year shipments total 13.718 mmt (August-through-April), up 1.880 mmt or 15.9% from the same period in 2017-18.

The largest monthly volume was shipped to Indonesia at 408,700 metric tons, who remains Canada's top destination with 2.009 million metric tons shipped in the first nine months of the crop year, up 54% from the same period in 2017-18. The next largest monthly volumes were shipped to Bangladesh at 144,200 mt and Japan at 125,500 mt.

The volume shipped to China in April totaled 111,200 mt, the lowest monthly volume shipped in six months, while the cumulative total volume shipped is 1.5244 mmt, with China as Canada's second largest wheat market in the first nine months of the crop year. As seen on the attached chart, cumulative shipments are 72.2% higher than the same period in 2017-18 and 171% higher than the three-year average.

One interesting piece of data reported for April was 27,500 mt shipped to Australia. This is the first of the shipments that Canada is poised to ship to this competing exporter after two years of drought in that country.

Data reported for shipments to Japan are also of interest. Despite the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade deal that has placed Canada at a competitive advantage to the United States in sales to Japan, Canada's cumulative exports to Japan are 700 mt or 0.06% lower than realized in the same nine-month period of 2017-18. A quick look at year-to-date exports to all 10 CPTPP countries shows a total of 3.1 mmt shipped, just 91,600 mt higher than the same period in 2017-18, which includes the 27,500 mt shipped to Australia.

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

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