Canada Markets

Cumulative exports for Canadian wheat (excluding durum) as of the end of May totals 13.768 million metric tons, which is 2.592 mmt or 23.2% above the average of the previous three years, as reported in the Canadian Grain Commission's Exports of Canadian Grain and Wheat Flour report for the month of May.

The largest year/year increase in volume is seen in movement to the U.S., with volume increasing 587,600 mt or 51% to 1.734 mmt through licensed channels. While this seems far short of the 3.4 mmt import target estimated by the USDA for wheat (125 million bushels), this difference will be narrowed by movement in June and July, as well as unlicensed exports which are reported at 801,018 mt as of the end of April.

Other large volume increases are seen in cumulative movement to Sudan, with year/year exports up 118% to 561,500 mt, Peru, with year/year exports up 87.5% to 831,400 mt and Mexico, with year/year exports up 48% to 991,000 mt.

Also of interest is the direct movement via Prairie elevators as a result of increased demand for south-bound deliveries, although this movement did fall short of desired volumes due to logistical constraints. Cumulative exports of wheat and durum combined were 1.324 mmt as of May 2013, or 8.5% of the total volume exported, while recent 2014 data indicates 2.027 mmt moving direct via Prairie elevator, or 11.5% of the total. A similar trend can be seen with unlicensed shipments, which totaled 631,692 mt for wheat as of the end of April, 2013. Most recent data indicates movement totaling 801,018 mt through unlicensed channels.

Cliff Jamieson can be reached at cliff.jamieson@dtn.com

Follow Cliff Jamieson on Twitter @CliffJamieson

(ES/)

© Copyright 2014 DTN/The Progressive Farmer. All rights reserved.