Sharp drop in canola stocks

Glacier FarmMedia | MarketsFarm — Statistics Canada reported total canola stocks have plummeted over the last year. The federal agency released its grain stocks as of March 31 report on May 8.

Also in the StatCan report, all wheat stocks declined moderately and there were other significant changes.

StatCan estimated canola stocks as of March 31 at 5.87 million tonnes. That’s down from 9.58 million the same time last year and the five-year average of 8.28 million. Canola’s drop from March-to-March was the largest decline in the report.

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There has been little doubt in the trade that Canada’s 2024/25 canola supplies have been rapidly shrinking due to the improved exports and domestic use compared to last year’s numbers. There have been suggestions that price rationing is required to curb demand.

Thoughts in the trade suggested StatCan could be as much as 1.50 million short on its estimate for the 2024/25 canola harvest of 17.84 million tonnes.

As for all wheat, the agency placed March 31 stocks at 15.42 million tonnes, for a dip of 180,000 from a year ago and moving further below the five-year average of 15.68 million tonnes.

At two million tonnes, durum stocks bumped up 52,000 tonnes while remaining well short of the 2.47 million-tonne average.

The largest increase in March 31 stocks was with dry peas. StatCan estimated an increase of 401,000 tonnes at 1.36 million, which was still under the five-year average of 1.48 million.

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