Canada Markets

In today's Canadian international merchandise trade report for April, Statistic Canada reported Canada's total imports of all merchandise rising 1.9% for the month while exports rose by 0.6%. This resulted in Canada's trade surplus falling by $800 million to $1.5 billion, a fourth consecutive trade surplus, although has fallen for three consecutive months.

The broad Farm, fishing and intermediate food products category shows exports valued at $3.7750 billion in April, up from the previous month while 6.7% below April 2021.

Canada exported 95,484 metric tons of lentils in April, the largest volume shipped in four months, while the smallest April shipments seen in six years. The largest volumes were shipped to Turkey, the United Arab Emirates and the United States. Cumulative exports total 1.044 million metric tons, down 40.8% from last year while down 37.9% from the five-year average. Exports have reached close to 70% of the 1.5 mmt forecast set by Agriculture and Agri-Food Canada in May, which was reduced by 100,000 mt in the most recent supply and demand forecast. Movement is slightly behind the pace needed to reach this forecast.

Chickpea exports in April totaled 23,458 mt, the largest volume shipped since April 2021. The largest volumes were shipped to Syria, Pakistan and the U.S. Cumulative exports total 105,040 mt, up 0.6% from last year and 6.2% higher that the five-year average. Cumulative exports have reached 65.6% of the 160,000 mt forecast set by AAFC, which was reduced by 5,000 mt in May.

April dry pea exports totaled 183,655 mt, down from the previous month, with 75% of this volume shipped to China. This is still the third-highest monthly volume shipped this crop year. Cumulative exports total 1.519 mmt, down close to 50% from the same period last crop year while down 45% from the five-year average. Cumulative exports have reached 72.3% of the 2.1 million metric ton forecast set by AAFC, while close to the steady pace needed to reach the forecast set by the government.

Mustard exports in April totaled 10,755 mt, down only slightly from the previous month, with close to two-thirds of the exports by value destined for the U.S. Cumulative exports total 81,951 mt over nine months, which is down 2.7% from last year while down 6.4% from the five-year average. Cumulative exports have reached 96.4% of the 85,000 mt forecast set by AAFC, which was increased by 5,000 mt in the May supply and demand forecast.

Canary seed exports in April totaled 15,586 mt, down from the previous month but still the largest April shipments seen in nine years. The largest volumes were destined for Mexico, Columbia and Spain. Cumulative exports total 126,890 mt, which are 6% higher than the same period last crop year and 11.3% higher than the five-year average. Cumulative exports are down 2.4% from the current government forecast of 130,000 mt, which was revised higher by 5,000 mt in May.

Canada's flax exports totaled 19,676 mt in April, down only slightly from the previous month. A reported 75.7% of this volume was shipped to the U.S. in April, the largest monthly volume shipped into this market in two years. Cumulative exports of 181,943 mt are down 56.3% from the same period last year while down 46% from the five-year average. Cumulative exports have reached 63.8% of the AAFC forecast of 285,000 mt, which was reduced by 15,000 mt in May, while close to the steady pace needed to reach this forecast.

Statistics Canada reported 154,405 mt of soybeans exported in April, down from the previous month but still the largest April volume shipped in four years. The largest volumes were shipped to Japan, Indonesia and Italy during the month. Cumulative exports total 3.578 mmt as of April, down 7.9% from last year and down 3.6% from the five-year average. Cumulative exports have reached 89.4% of the current 4 mmt export forecast, well-ahead of the steady pace needed to reach this forecast.

Corn exports in April totaled 383,519 mt, which seems the largest volume ever shipped in any given month. European destinations were the focus during the month, with the largest volumes destined for Ireland, Spain, Portugal, Netherlands and the United Kingdom. Cumulative exports total 1.170 mmt, up 40.1% from the same period in 2020-21 and 65% higher than the five-year average. AAFC revised its forecast for crop year exports by 250,000 mt in May to 1.750 mmt, while the current pace of movement is equal to the steady pace needed to reach this forecast.

Corn imports in April fell to 536,024 mt, the lowest volume imports in six months. Cumulative September through April imports total 4.256 mmt, which is already higher than the 4 mmt import forecast released by AAFC in May. There remains an unusual lag in the USDA's accounting for this movement, with the May World Agricultural Supply and Demand Estimates (WASDE) report forecasting U.S. exports of corn to Canada at 3.8 mmt in 2021-22.

Canola oil exported in April totaled 224,771 mt, down only slightly from the previous month. Cumulative exports total 1.908 mmt, down 25.6% from the same period last year and down 23% from the three-year average.

Canola meal exports totaled 376,520 mt in April, down from the previous month. Cumulative exports total 3.452 mmt, down 14% from the same period in 2020-21 and down 7% from the three-year average.

Canada imported 138 million liters of ethanol in April, up 18% from the previous month and the highest monthly volume imported since July 2018. U.S. data reported today points to Canada being the largest export destination for the U.S. in April, with Canada shipped 22% of total U.S. exports. Total imports over the January to April period are seen at 491 million liters, up 49% from the same period in 2021 and 41% higher than the five-year average.

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

Follow him on Twitter @Cliff Jamieson

(c) Copyright 2022 DTN, LLC. All rights reserved.