Marketing Problems Lift Canada's Stocks

OTTAWA - May 10/06 - SNS -- Stocks of major grains and oilseeds remain above their previous 10-averages as of March 31, according to Statistics Canada, perhaps explaining why growers in that country are considering an overall decline in the amount of land put into crops this year.

This is the second year in a row this has happened, delivering a clear message to Canadian farmers that the country's grain marketing, handling and transportation systems are incapable of keeping pace with the country's production potential. The fact few crops are moving well is behind grower frustration with current markets.

Analysts at STAT Market Research highlighted the fact there was a significant grain transportation problem last fall, which compromised Canada's ability to sell what it is currently growing. Those statements were ridiculed in the public media by some grain industry officials, only to have those same individuals nor pronounce on public forums that Canada faces dire problems, with CN Rail bearing the brunt of very public, "anonymous" criticism.

In its stocks in all positions report, Statistics Canada said, "For the second consecutive year, total stocks of grain and oilseeds, including commercial and on-farm inventories as of March 31, reached levels well above their 10-year averages according to surveys of grain farmers and commercial grain holders. In addition, total stocks of soybeans, corn, durum wheat, and canola set new records."

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