Canadian Canola Crush Starts Slow

OTTAWA - Sep 19/02 - STAT -- Canadian canola crush got off to a slow start in August, with the volume handled by Canadian plants slipping from 197,758 metric tons (MT) last year to 190,994 MT this year.

However, the rate of decrease is expected to pick up pace on account of sharply reduced supplies of canola. Carry in stocks were up over last year, advancing from 1.088 million MT to 1.215 million. But, production will not match last year's 4.926 million MT crop. Last month, Statistics Canada cut this year's production estimate to 3.238 million MT on account of greater than normal abandonment of fields and lower average yields on harvested fields. That number is shrinking.

The net result is Canadian canola crush across the coming 2002-03 marketing year should drop below year earlier levels. Commenting on this outlook, Tennessee's Humko Oil Products predicts, "This could result in lower U.S. imports of canola oil. The Japanese have reportedly covered their near term requirements and are expected to put a hold on buying in anticipation of normal harvest pressure."

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