Canadian Grain Exports
Grain Trends North America – 2016
Canadian grain exports of wheat, excluding durum, have reached nearly 10 million tons between August 2015 and January 2016. This is up from the same 2014 to 2015 period by almost 19% (8.1 million tons). March 2016 prices are averaging approximately $4.40 per bushel. Durum wheat is projecting a slight acreage increase due to the better prices in 2015.
With Canadian grain exports of 24.1 million tons this past year, Canada overtook the United States in wheat exports for the first time. This looks to be an ongoing trend with slight fluctuations over the next several years.
Globally, wheat production is trending lower for 2016. The U.S. projects the lowest exports since 1971 due to competition from other countries, including Canada. In addition, the higher prices and demand for pulses, or legume seeds, indicates a decrease in acreage for wheat and an increase for the pulses.
Canola is currently up from 4.1 million tons to 4.8 million tons for the crop year. This is a significant increase from the five-year average. Canola prices average $10.00 per bushel according to the latest prices and it doesn’t appear there will be much change in acreage.
There is a growing trend towards the production of pulses due to their high protein content and increasing demand by consumers and restaurants. As the demand for this popular seed increases, it’s likely cereal grains will lose some acreage to pulse production. Prices are strong for lentils and peas at .25 to .40 per pound for lentils and $8.00 to $9.00 per bushel for yellow peas.
Overall, 2016 looks to be a mixed year for Canadian grain exports with wheat prices remaining stable and canola showing an increase. Pulses are likely to continue their current trend with a significant increase due to their growing popularity.
Contact Barr Ag to get more information on any or our crops including Alfalfa, Timothy, Mixed Hay, Canadian Grains and Pulse crops.