Slow harvest due to rain and early snowfall in Western Canada is delaying the movement of grain to prairie elevators and export terminals on the West Coast and at Thunder Bay. Some are saying the harvest is behind as much as 30 percent and CP indicated that they have shipped about 1,000 cars fewer compared to the first three weeks of last season. The size of this year’s crop is estimated at 70 million metric tonnes plus.
Canola values remained sluggish with predicted canola production of around 19.358 million tonnes. Despite continued disinterest from China, increased demand from the European Union has provided support to values. Traders anticipate more demand from the European Union later in the year, totalling between one million and three million tonnes. If a deal with China were to come back into the mix, export sales would be considerably stronger.