Canada’s common wheat exports fall 29% on week, durum wheat shipments rise

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Canadian common wheat exports fell 29% week on week to 187,100 mt in the week ended Jan. 9, Canadian Grain Commission data released Jan. 16 showed.

Common wheat exports for the marketing year 2021-22 (August-July) to date were also sharply lower on the year. From Aug. 1 through Jan. 9, Canada shipped 5.2 million mt of common wheat, down from 8.1 million mt in the same period of MY 2020-21.

Exports of the food grain fell in the week to Jan. 9 as wheat prices globally declined and demand for crops from other origins increased. Export prices of Canadian wheat have also seen some volatility amid choppy trade in the past two weeks, traders said.

However, exports of durum wheat rose to 19,600 mt in the week to Jan. 9 from 13,100 mt the week before, the data showed.

Durum wheat exports over Aug. 1-Jan. 9 totaled 1.2 million mt, down more than 52% from the same period of of MY 2020-21.

Canada exported a total of 26.4 million mt of wheat in MY 2020-21. Agriculture and Agri-Food Canada has estimated the country’s wheat exports in MY 2021-22 to fall sharply to 16.1 million mt, while the US Department of Agriculture has forecast Canada’s wheat exports at 15 million mt for MY 2021-22.

Canada’s wheat exports are expected to see a sharp decline in the current marketing year as the exportable surplus is seen tightening, with output at the lowest in more than 14 years due to a warm and dry summer.

In MY 2021-22, Canada is likely to harvest 21.7 million mt of wheat, down sharply from 35.2 million mt the year before, the AAFC said.

The USDA has pegged Canada’s wheat output in MY 2021-22 at 21.7 million mt.

The price of 13.5% CWRS wheat FOB Vancouver for 30-45 days forward was assessed at $376.35/mt Jan. 14 and the FOB Vancouver price of 13.5% CWRS wheat for 45-60 days forward at $377.82/mt, both down $6.34/mt day on day, S&P Global Platts data showed.

Some traders expect exports of the high-protein content wheat to increase in the coming months as premium quality wheat supplies from Australia are seen tightening. The expected increase in shipments may also help the price of the commodity recover in the near term, traders said.

 

S&P Global Platts

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