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Canadian wheat exports strong despite global competition

Sask Wheat’s most recent wheat market outlook shows that Canadian wheat exports have been quite good (8.27 million mt wheat plus one point one million mt durum for a total of nine point four million mt all wheat). U.S. exports also improved lately with recent large sales to China.

In its last report in December, Agriculture and Agri-Food Canada (AAFC) projected Canadian wheat ending stocks at three point five million mt, up eight per cent from last year. This was roughly in line with Sask Wheat’s expectations for wheat ending stocks.

The U.S. wheat harvest was an improvement on the previous year and Canada weathered some difficult growing conditions to eventually post a solid 32 million mt wheat crop.

Combined, the U.S. and Canada produced two million mt more wheat in than the prior year.

As of week 20, the Canadian Grain Commission reported durum exports at one point one million mt, down 37 per cent from last year. This is primarily because of a reduction in exports to Italy, which bought much increased volumes from Turkey early in the season.

In its December report, the AAFC increased Canadian durum ending stocks by a 50,000 mt to 450,000 mt, which is slightly higher than the Mercantile number.