Oil World reports that Canada will have 3 million metric tons of canola stockpiled by the end of July – up from its estimate of 2.8 million tons two weeks ago and well over the 610,000 tons stockpiled a year earlier. Oil World goes on to state that Canadian canola farmers will be unable to benefit from global demand because of a lack of rail car allocation. Canada has seen a 28% increase in canola output from the previous year to 17.96 million tons while also seeing a bumper crop of wheat causing commodities to have to compete with oil for rail transport. Global exports were up 1.2 million tons between July and December on shipments from Russia, the EU, and Australia while exports from Canada between August and December were at a three-year low of 3.46 million tons. Currently Canadian canola is trading at a discount of $94.95 per ton compared to comparable contracts in Paris. For 2013/14 world production of canola and rapeseed will be a record 69.3 million tons – 200,000 tons higher than Oil World’s estimate last month. China will likely become the world’s largest importer importing 3.8 million tons compared to 3.05 million tons the year before.
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