Canadian canola stocks were the tightest in four years before the country's harvest began, while wheat supplies topped those of last year, according to a Reuters survey ahead of a government crop report. Reuters surveyed 17 traders and analysts ahead of Statistics Canada's September 6 report on crop stocks as of July 31, 2017, which marked the end of the 2016/17 marketing year.
The report, using market data and a farmer survey, will gauge how much crop was in the system before the harvest, which is underway for some crops. Canola in commercial and farm storage is expected to amount to 1.5 million tonnes, traders estimated on average, the smallest mid-summer supplies since 2013 and down 26 percent from a year ago. Canadian crushers processed more canola during the last crop year and canola seed exports also climbed, according to data from the Canadian Oilseed Processors Association and the Canadian Grain Commission.
Even with a potentially record-large canola harvest this fall, Canadian canola supplies look tight for the coming year, said Glen Pownall, managing director of exporter Cremer Canada. Crushers in Canada and China look to be strong canola buyers and US duties on biodiesel from Argentina will drive up demand for Canadian canola, a feedstock for biodiesel, Pownall said. All-wheat supplies are expected, on average, to amount to 6 million tonnes as of July 31, up 16 percent from last year. Trade estimates varied widely. Statscan surveyed farmers from July 19 through August 1. Before the September 6 stocks report, Statscan will estimate Canadian crop production on Thursday.