MarketsFarm — The size and quality of the 2023 Canadian grain crop is still very much in the air, but domestic feeders intend to keep at least some corn from the U.S. in their rations going forward no matter what is grown on the Prairies.
Canadian buyers have already booked 78,500 tonnes of U.S. corn for delivery during the 2023-24 marketing year, which begins Sept. 1 for corn, according to weekly export sales data compiled by the U.S. Department of Agriculture. That compares with the 21,500 tonnes of new-crop business on the books at the same time a year ago and marks the largest new-crop corn sales to Canada on the books at the end of June since 2006.
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The drought in 2021 led to a large increase in Canadian corn imports from the U.S. during the 2021-22 marketing year, and livestock feeders have continued to bring up trainloads of corn — although to a lesser extent.
While there is no longer a shortage of local feed grains, the ease of sourcing a unit train of U.S. corn compared to booking dozens of individual domestic truckloads was behind some of the demand for corn, according to industry participants. Corn also holds some energy benefits over barley, while there can be difficulties in switching rations.
Canada has imported 448,700 tonnes of U.S. corn as of June 22, with 94,700 tonnes still outstanding for the 2022-23 marketing year. That compares with the 3.26 million tonnes imported by the same point the previous year but would be in line with the previous five-year average.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
