Canada Markets

Canada's global trade deficit narrowed to $3 billion in the month of April, down from the record $3.9 billion deficit in March but still the second highest level on record. April saw a slightly lower trade deficit recorded for trade with countries other than the United States, while Canada's trade surplus with the U.S. increased to $2.4 billion.

The value of the country's total exports fell to $41.9 billion in April from $42.2 billion last month, reported to be the seventh monthly drop seen since July 2014 when a record $45.6 billion was exported. Total exports in the Farm, fishing and intermediate sub-group was reported at $2.535 billion, up 1.7% from last month and the fourth lowest of the nine months reported this crop year. The dollar value of wheat exported in April was the lowest seen this crop year at $501.4 million while the dollar value of canola was the second highest reported after August at $447 million.

Here's a look at some special crop data released this morning:

Lentil exports totaled 142,843 metric tons for April, a three month low as supplies on the Prairies dwindle. Year-to-date (crop-year), 1.674 million metric tons have been shipped, 37.6% above year-ago levels and 56% higher than the three-year average as of the first nine months of the crop year. Supply will be the limiting factor this crop year, while AAFC only recently moved its annual target higher to a record 1.8 mmt. India remained the largest buyer, more than doubling the previous month's volume while taking the largest monthly volume since December.

Dry pea exports were reported at 188,066 mt in April, a two-month high. Year-to-date, exports total 2.48 mmt, 27% higher than this time last year and 29.6% above the three-year average. AAFC's May 20 supply and demand data increased the annual export target by 50,000 mt to 2.950 mmt, slightly below the record 3.012 mmt shipped in 2010/11 with only tight supplies of dry peas limiting this year's ability. China was the largest buyer in April, taking 40% of the total volume while Canada moved the largest volume to that country since December.

Mustard exports for April were reported at 11,861 mt, the highest volume seen in five months, with 94,087 mt moved so far this crop year. This volume is 93.2% of the volume moved this time last year while 2.4% above the three-year average. The May AAFC supply and demand tables left the forecast for 2014/15 exports at 135,000 mt which may be a challenge for the industry in the last quarter of the crop year. The U.S. is by far the largest buyer, taking 52.6% of the April volume.

Canada's canary seed exports for April totaled 12,831 mt, slightly below the volume moved in March. Year-to date, 129,939 mt have been shipped, 14.3% higher than this time last year and 26.5% above the three-year average. AAFC left its forecast for 2014/15 exports unchanged at 170,000 mt in May, which may challenge the industry.

Sunflower seed exports in April were reported at 3,035 mt, a three-month low. Year-to-date, 25,245 mt have been exported, well below both last year and the three-year average. AAFC's May forecast left the annual export target at 45,000 mt, which remains a lofty goal.

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(ES)

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