Canada: Barley exports in 10 weeks of this marketing year the highest for the period since at least 2013-14

Canadian barley exports in weeks 1-10 of this marketing year were the highest for the period since at least 2013-14, driven by strong purchases from China and despite expectations of weaker domestic output, the Argus Media reported on October 19.

Canada shipped 540,000 tonnes of barley in weeks 1-10 of the 2021-22 marketing year that started in August, Canadian Grain Commission data show. This was up from the previous record of 514,000 tonnes a year earlier and far above an average of 136,000t for the same period in 2013-20.

Exports accelerated in late September after a slow start to the season, with shipments peaking at 225,000 tonnes in the week to 25 September.

Exports rose to a new high despite production falling to 7.1 mln tonnes in weeks 1-10 from 10.7 mln tonnes a year earlier, as hot and dry weather weighed on yields, offsetting higher acreages than in previous years.

This was as China made stronger and earlier purchases of the crop — unlike previous years. A breakdown of Canadian exports by country is not available yet, buy Chinese customs data show Canada was China's largest barley supplier in July-August, receiving 444,000 tonnes, with Argentina supplying the second-highest volume, at 387,000 tonnes.

And early customs data from China show barley imports in September of 1.51 mln tonnes, up from 690,000 tonnes in August and the highest for any month since at least 2015.

China upped barley imports as animal producers sought alternative feed crops amid rising wheat and corn prices globally. The US Department of Agriculture's (USDA) Foreign Agricultural Service (FAS Beijing) earlier this month revised up its projection for China's 2021-22 barley imports by 900,000 tonnes to 10.5 mln tonnes, while trimming those for corn and wheat imports by 6 mln tonnes and 2 mln tonnes, respectively.

But reduced domestic production suggests Canadian exporters might have already sold a considerable share of available barley supply, implying shipments could slow later in the season. The USDA expects Canadian barley exports of just 1.6 mln tonnes this year, while government department Agriculture and Agri-Food Canada sees them at 2 mln tonnes. This suggests at least a quarter of export-bound barley has already been shipped.

19 October, 2021