Canola export pace to stay strong going forward

(Commodity News Service Canada) –– Canadian canola exports continue to move forward at a solid pace and show no signs of letting up despite the higher prices.

“Overall, it’s a pretty healthy S+D (supply and demand) for the farmers,” said one line company canola exporter.

While canola prices were at their highest levels in two years, the exporter said, other oilseeds were also seeing strong prices and canola may be lagging those markets to the upside in terms of price.

Exports did not seem to be slowing down at all, with business to China, Japan, Mexico, Dubai and Pakistan keeping activity at the ports brisk, he said.

However, he said. some vessels were being delayed due to weather, or because of delays with the railroads moving the product from Western Canada to the ports.

The most recent Canadian Grain Commission grain handling report shows canola exports during the 2010-11 crop year to date at 2.625 million tonnes, up slightly from 2.563 million at the same point the previous year.

Weekly numbers put out by the Canadian Oilseed Producers Association show the domestic crush to date, 2.135 million tonnes, is running about 750,000 tonnes above the year-ago level.

That strong demand could leave the country with some rather tight ending stocks by the close of the 2010-11 crop year, which should keep prices well supported going forward, according to market participants.

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