Canada's common wheat exports fall over 64% on week to 67,400 mt

Canadian common wheat exports fell by over 64% on the week to 67,400 mt in the week ended April 10, data released April 18 by Canadian Grain Commission showed.

Common wheat exports for the marketing year 2021-22 (August-July) through April 10 fell 42% on the year to 7.9 million mt.

Exports of the food grain fell in the week ended April 10 as Canadian wheat prices started to increase amid continued uncertainty over trade prospects from the Black Sea region and drought conditions in the Prairies, traders said.

Canada's durum wheat exports in the week ended April 10 fell to 42,900 mt from 53,600 mt in the previous week, the data showed.

Durum wheat exports over Aug. 1, 2021-April 10 totaled 1.7 million mt, down nearly 60% year on year.

In MY 2020-21, Canada exported a total 26.4 million mt of wheat. However, exports have been poor during MY 2021-22 amid a lack of surplus due to poor output.

In its March update, Agriculture and Agri-Food Canada estimated the country's wheat exports at 15.5 million mt in MY 2021-22. In MY 2021-22, Canada is likely to harvest 21.7 million mt of wheat, down from 35.2 million mt the year before, AAFC said.

The wheat output in MY 2021-22 is seen to be the lowest in over 14 years due to a warm and dry summer.

Export prices see fall

Export prices of Canadian wheat fell in the week to April 15 after gradually gaining over the past two weeks. According to traders, receding drought conditions in key wheat-growing regions were seen to be affecting prices.

However, overall prices remained over 4% higher month on month.

According to data from S&P Global Commodity Insights, 13.5% Canadian Western Red Spring wheat, FOB Vancouver, for 30-45 days forward was assessed at $459.48/mt April 14, down $7.17 on the day. The 13.5% CWRS wheat, FOB Vancouver, for 45-60 days forward was assessed at $462.15/mt, down $6.34/mt on the day.

The ongoing war between Russia and Ukraine is expected to support Canadian wheat export prices over the next few weeks, traders added.

Russia and Ukraine's combined wheat exports during the 2021-22 marketing year are estimated to account for 26% of the global trade, according to the US Department of Agriculture.

However, poor demand from buyers amid higher prices may dent exports in the near term, a Vancouver-based trader said.

The lack of exportable surplus in Canada might also limit its shipments, he added.