The country’s smallest canola harvest in 13 years is forcing importers such as Japan and Mexico to pay more or scramble for supplies elsewhere.
Both export markets and domestic crushers are coming up far short of normal supplies. Exports were only 388,000 tonnes in the first seven weeks of the new crop year (which began Aug. 1). That’s down 71 per cent year over year.
“The entire market is still in a bit of shock,” said one exporter.
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Exports are forecast to fall 38 per cent to 6.5 million tonnes, while crushing volumes tumble to 7.5 million tonnes from last year’s record 10.4 million, according to Agriculture and Agri-Food Canada.
Australia and Ukraine, which have bigger harvests this year, stand to benefit but won’t be able to entirely fill the shortfall, said a senior analyst with Rabobank.
