STAT Communications Ag Market News

Grain, Pulse Inventories Decline

OTTAWA - Feb 5/18 - SNS -- Available supplies of grains and pulses were down from last year, while canola was up, according to Statistics Canada's December 31 stocks in all positions report.

"In general, the decline in total stocks was the result of lower production of almost all major field crops in 2018, combined with higher exports," Statistics Canada said in releasing the data.

Nationally, stocks of dry field peas declined 11.4% from the same date in 2017 to 2.5 million MT. On-farm stocks fell 15.8% in 2018 to 2.1 million metric tons (MT), offsetting a 29.9% increase in commercial stocks, which totalled 356 000 MT.

Similarly, total stocks of lentils were lower in 2018, decreasing 0.8% to 2.1 million MT. On-farm stocks fell 4.9% to 1.9 million MT, while commercial stocks rose 69.8% to 197 000 MT.

Lower production of lentils and dry peas, possibly the result of import tariffs introduced by India in the fall of 2017, resulted in lower stocks in 2018. Despite a slight increase in year-over-year exports in 2018, exports of dry peas were 28.4% lower than in December 2016 before the introduction of import tariffs, while lentils were down 48.9%.

At the national level, total wheat stocks on December 31, 2018 were down 0.2% from the same period in 2017, to 23.2 million MT. On-farm stocks fell from 19.5 million MT in 2017 to 19.1 million MT in 2018. The decrease in on-farm stocks offset the increase in commercial stocks, which rose 9.2% to 4.1 million MT in 2018.

While wheat production rose 6.0% at the national level in 2018, higher exports drove wheat stocks lower. Wheat exports increased 13.5% from the same date one year earlier to 10.0 million MT on December 31, the highest export volume for the same period since 2014.

Canola stocks rose to a record-high 14.6 million MT in 2018, a 4.9% increase from the previous year. On-farm stocks rose 6.3% over 2017 to 13.4 million MT. Commercial stocks decreased to 1.2 million MT in 2018, from 1.3 million MT in 2017.

Despite lower total production in 2018, canola stocks rose compared with one year earlier, due in large part to lower exports and high carry-in farm stocks from the previous crop year. Lower prices in the second half of the calendar year, combined with poor weather conditions in the Prairies during harvest, contributed to a decline in deliveries compared with the previous year.

At the national level, corn for grain stocks fell 7.4% from December 31, 2017 to 11.5 million MT. On-farm stocks decreased from 9.5 million MT in 2017 to 8.5 million MT in 2018. Conversely, commercial stocks increased 0.6% over 2017 to 3.0 million MT.

Total stocks of soybeans in Canada fell from 4.4 million MT on December 31, 2017 to 4.0 million MT in 2018. On-farm stocks fell 12.9% from the same date in 2017 to 2.6 million MT. Meanwhile, commercial stocks rose 0.8% over the same period to 1.4 million MT.

Overall stocks of barley decreased to 4.9 million MT in 2018, down 1.1 million MT from the previous year. The decline was primarily fuelled by on-farm stocks, which fell 19.3% compared with 2017 to 4.6 million MT. Commercial stocks rose to 296 000 MT (+5.7%) compared with one year earlier.

As of December 31, 2018, total stocks of oats were down 19.7% year over year to 2.3 million MT. On-farm stocks fell 22.1% to 2.1 million MT, while commercial stocks rose 15.8% to 220 000 MT.

Only active subscribers can read all of this article.

If you are a subscriber, please log into the website.

If you are not a subscriber, click here to subscribe to this edition of the STAT website and to learn more about becoming a subscriber.