Statistics Canada reports as of July 31, Canada's total stocks of canola and oats were down from the same date in 2016. Meanwhile, wheat, barley and lentil stocks increased.
For wheat, on-farm stocks increased 8.5% to 2.4 million tonnes, compared with the same date last year. Canola stocks declined over 35% to 1.3 million tonnes. Neil Townsend is a senior market analyst for Farmlink Marketing Solutions. He says the wheat number was about 900,000 tonnes higher than anticipated, but given the quality breakout of last year's crop, the feed and residual number has a higher discrepency. Canola crush and exports reached record highs during the 2016-17 crop year. As of July 31 canola crush stood at 9.2 million tonnes, while total exports were 11.0 million tonnes. Major wheat producing regions in the U.S. have been hit by a yield robbing virus. The outbreak of wheat streak mosaic virus in Kansas, the top wheat producing state was the worst in over a decade. The virus, which also struck parts of Oklahoma, Nebraska and Colorado caused production losses of nearly 6% this year. However, Townsend says Kansas farmers typically grow hard red winter wheat, so a bit of loss in the 2017-18 crop won't have any impact on the U.S. markets. He also notes on a global stage that the French have been able to grow a good quality crop and the Russian wheat continues to grow, so there is a potential that the world will produce a record wheat crop in the 2017-18 season.