CNS Canada –– Canola supplies in commercial hands in Western Canada are tightening, with the latest Canadian Grain Commission weekly report showing only 1.05 million tonnes in the pipeline as of Sunday.
Visible canola stocks are typically considered low whenever they move below one million tonnes. The current supplies on hand are the smallest since September 2016, when the old crop was running out but newly harvested supplies were not yet coming off the farm.
Farmer deliveries are reportedly slowing down, as producers focus their attention on spring seeding. The CGC posted weekly canola deliveries of 301,200 tonnes, down by nearly 70,000 tonnes from the previous week and well off the average weekly deliveries during the crop year to date of 390,000 tonnes.
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Weekly canola exports, of 286,600 tonnes, were down from the previous week, but still solid and well above the average for the year-to-date of about 210,000 tonnes.
Weekly domestic usage reported by the CGC was very low, at only 136,500 tonnes. That compares with the crop-year-to-date average of about 175,000 tonnes, and marks the smallest weekly domestic usage number reported by the CGC since August 2016.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
