Canadian stockpiles of canola dwindled to a four-year low ahead of planting season after brisk demand from crushers and exporters, but wheat supplies swelled, according to a Reuters survey of 12 traders and analysts. On Friday, Statistics Canada will estimate crop supplies as of March 31, 2017, from commercial and farm storage. The report is based on a farmer survey and government data, and offers a snapshot before farmers sow the next crop.
The average estimate pegged total canola stocks at 6.7 million tonnes, down 22 percent year over year, and the smallest early-spring supplies since 2013. Rising canola prices are a good indication that supplies of the oilseed are running thin, said Chuck Penner, analyst at LeftField Commodity Research. More than 1 million acres of canola, wheat, and other crops are still in fields, according to government and industry estimates, with quality unknown, after wet October weather pre-empted harvest season.