By Lethbridge News NOW

CANOLA EXPORTS DOWN

Canadian canola exports down 1-million tonnes thanks in large part to Chinese restrictions

Jul 31, 2019 | 6:30 AM

LETHBRIDGE– The Canadian Grain Commission (CGC) reports that, from the start of the growing season until mid-July, recorded canola exports totaled 8.9-million tonnes. This is about one million tonnes less than in the same time last year.

As well, the group claims that canola deliveries to the licensed Canadian handling system was down about 780,000 tonnes at 17.6-million.

“China, after a stronger start to importing Canadian canola in crop year 2018-19, had imported 560,000 tonnes less canola seed from Canada to the end of May than in the same 10-month period last crop year,” says Provincial Crop Market Analyst with Alberta Agriculture and Forestry Neil Blue.

“Lower exports of Canadian canola seed to Mexico, Japan and the United States were also recorded.”

Blue states that many farmers have been suffering from lower canola prices, which eroded back in December.

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“During June and July, there were bids of more than $10 per bushel for No. 1 canola – not as high as wished but still historically good. Off-grade No. 3 and sample canola is marketable, although discounted to a range of $5 to $9 per bushel, quality dependant. Canola basis levels have varied widely, with some buyers bidding 50 cents a bushel more than nearby competition. Some line elevator companies have offered basis ‘specials,’ resulting in prices near $10 per bushel.”

Blue adds that canola carryover will likely be a record-high this season due to the lower prices.

Without a resolution to the trade issue with China, he does not expect canola prices to rebund in the near-term.

It is not all bad news, though, as domestic use increased by 200,000 tonnes over last year, reaching 9.1-million tonnes as of mid-July. According to the CGC, much of this was used for small biodiesel plants.