Just as the United States is expected to harvest a bumper crop, according to the latest Department of Agriculture numbers, Canada is expecting a high-volume harvest as well.
CNS Canada reports Canadian grain companies are bracing for a high-volume year. Grain companies say this year’s overall crop to be roughly equivalent to those of the past two years, when shipping backlogs were an issue.
The Western (Canada) Grain Elevator Association says: “We’re still talking about the new normal here; what is a very large crop in Western Canada.” The U.S. has faced similar rail and shipment issues in the past. Canada has imposed penalties for service failures, but those regulations will not be enacted during the fall shipping season. Grain movement “remains fairly stable,” but the Associations does note that global trade disruptions this year could make the situation less predictable for grain companies trying to assess market risks.
Source: National Association of Farm Broadcasting News Service.