Wheat stockpiles in Canada, the world’s second-largest exporter, surged 38 percent last year, topping estimates by analysts, and canola inventories reached an all-time high after farmers harvested the biggest crops ever.
Wheat supplies rose to 28.4 million metric tons as of Dec. 31 from 20.6 million a year earlier, Statistics Canada said today in a report. On average, four analysts surveyed by Bloomberg News expected 28.2 million. Canola stockpiles jumped 55 percent to 12.6 million tons from 8.1 million.
In 2013, wheat production rose to a record 37.5 million tons, and canola output surged to 18 million, an all-time high, the government estimated on Dec. 4. Through yesterday, benchmark wheat futures tumbled 28 percent in the past 12 months, while canola in Winnipeg tumbled 32 percent.
The inventory data “confirms the big crop from the summer,” Jamie Wilton, a commodity futures specialist at ScotiaMcLeod in Winnipeg, said in a telephone interview. “It’s overall negative. There are a lot of stocks to chew through.”
Wheat futures for March delivery rose 1.8 percent to $6.22 a bushel at 11:30 a.m. on the Minneapolis Grain Exchange. The U.S. is the top exporter.
Inventories on farms rose 52 percent to a record 25 million tons, while commercial stocks dropped 19 percent to 3.4 million.
Canola for March delivery climbed 0.1 percent to C$427 ($385.87) a ton on ICE Futures Canada. Analysts in the Bloomberg survey forecast stockpiles at 13.1 million, on average. The North American nation is the biggest producer and exporter.
Another bumper canola crop this year may compound a glut, further straining domestic storage bins, Ken Ball, a senior commodity futures adviser at PI Financial in Winnipeg, said in a telephone interview. At the end of July, stockpiles may rise to least 3.5 million tons from 608,000 tons a year earlier, he said.