Jan 10, 2022
Canadian common wheat exports rose 32.5% in the week ended Jan. 2, Canadian Grain Commission data released Jan. 9 showed.
Exports increased to 263,800 mt from 199,100 mt the week before, according to the data.
However, overall common wheat exports for the marketing year 2021-22 (August-July) remained sharply lower on the year at around 5 million mt, down over 41%. During the same period of MY 2020-21, Canada had shipped out slightly over 8.5 million mt of the food grain.
Exports of the food grain rose in the week to Jan. 2 as demand for the crop increased from countries in the Middle East amid a sharp decline in prices. However, prices have recovered slightly, traders said.
In the same week, however, exports of durum wheat fell sharply to 13,100 mt from 45,400 mt the week before.
From Aug. 1 to Jan. 2, exports of durum wheat totaled 1.2 million mt, against 2.5 million mt during the same period last year.
In MY 2020-21, Canada exported a total of 26.4 million mt of wheat. Agriculture and Agri-Food Canada has estimated the country’s wheat exports in MY 2021-22 to fall sharply to 16.1 million mt. The US Department of Agriculture expects Canada’s wheat exports at 15 million mt for MY 2021-22.
Canada’s wheat exports are expected to see a sharp fall in this marketing year as the exportable surplus is seen tightening with output at lowest in more than 14 years amid one of the warmest and driest summers on record.
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, AAFC said.
CWRS wheat FOB 13.5% Vancouver for 30-45 days forward was assessed at $385.17/mt Jan. 7, up $4.96, and FOB prices of 13.5% CWRS Vancouver for 45-60 days forward at $386.64/mt, up $4,59/mt, 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 in the current season.
An expected increase in shipments may also boost the price of the commodity in the near term, traders said.