World Grain - July 2018 - 26

COUNTRY FOCUS

protein level (all grades) was 13.0%, slightly below the 13.4%
10-year average."
The report explained that more than 75% of Canadian wheat
production is CWRS.
"The Canadian Prairie Spring Red (CPSR) crop exactly
matched the 12.1% 10-year average," the USDA said.
One problem for Canadian exporters has been disruption
of rail transport, which the report said peaked as there was a
sharp (43% on the year) fall in exports in February.
"The decrease coincided with the peak of accumulated,
backlogged export shipments following a months-long rail
transportation disruption," the USDA said. "Canadian producers have been voicing their concerns about the rail disruption
since September 2017. Despite recent improvements, producers claim foreign buyers are replacing imports of Canadian
wheat with wheat from Australia and elsewhere."
A March attaché report on the rail situation explained that
"beginning in September 2017, increased demand from intermodal freight shipments and fracking sand from Wisconsin
have caused a shortage of locomotives and crews on Canada's
WZR&ODVV,UDLOOLQHV²&DQDGLDQ3DFL¿F&3DQGWKH&DQDdian National Railway Company (CN)."
The report noted extreme cold weather across the prairies,
heavy snowfall, and a strong 2017 harvest have exacerbated
rail capacity issues, backlogging shipments of oilseeds, grains
and pulses out of Thunder Bay, Vancouver, and Prince Rupert.
More recently, on May 25, the attaché reported that Canada had, on May 23, "enacted a sweeping legislative update
intended to improve Canadian grain shippers' access to rail
services and mitigate uncertainty caused by the expiration of
regulations in late 2017."
The new law imposes weekly price data and performance
metric reporting requirements on CN and CP "and will allow

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carriers' failure to provide service," the report said.
MILLING AND OILSEEDS
$FFRUGLQJWR¿JXUHVFLWHGE\WKH&DQDGLDQ1DWLRQDO0LOOHUV$VVRciation, there are some 48 wheat and 7 oat mills in Canada. They
process approximately 3.1 million tonnes a year and produce
DURXQGPLOOLRQWRQQHVRIÀRXUDQGPLOOHGZKHDWSURGXFWV
Canada is a large-scale oilseed producer and trader. It is the
world's biggest grower of canola, forecast by the IGC to produce 20 million tonnes in 2018-19, down from 21.3 million the
year before. Canada is the biggest canola exporter, forecast to sell
11.5 million tonnes abroad in 2018-19, up from 11.3 million the
year before. The country is also set to produce 7.5 million tonnes
of soybeans in 2018-19, down from 7.7 million the year before.
Canada's soybean exports are forecast at 5.3 million tonnes in
2018-19, up from 5.2 million the previous year, with imports unchanged at 300,000 tonnes.
Oilseeds are proving popular with farmers. The attaché's
annual report on the sector, published in March, noted that
Canadian area seeded to canola in marketing year 2017-18
H[FHHGHGDUHDVHHGHGWRZKHDWIRUWKH¿UVWWLPHHYHU
"Strong canola returns continued to extend crop rotation
decisions and draw area from wheat and other grains into
canola," the report said.
The report also pointed out that the Comprehensive and ProJUHVVLYH $JUHHPHQW IRU 7UDQV3DFL¿F 3DUWQHUVKLS &3733
which Canada signed on March 8, will expand Canada's acFHVVWRYDOXDEOHRLOVHHGPDUNHWVLQWKH$VLD3DFL¿FUHJLRQDV
well as "growing value-added oilseed processing in Canada
and altering Canadian oilseed and products export composition in the years ahead."
"Canada is highly dependent on export markets, with 50% to

Canada canola, wheat situation
(in 1,000 tonnes)

Canola

25,000

Wheat

40,000
35,000

20,000

30,000
25,000

15,000

20,000
10,000

15,000
10,000

5,000

2018-19**

*Projected

2017-18*

2016-17

Production

2015-16

2014-15

Exports

2013-14

2012-13

**Forecast

0

2011-12

2018-19**

*Projected

2017-18*

2016-17

Production

2015-16

2014-15

Exports

2013-14

2012-13

2011-12

0

5,000

**Forecast

Source: U.S. Department of Agriculture

26

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