Weak Farm Supply Sales A Drag Wholesale Stats – for Jul. 29, 2010

By 
Reading Time: < 1 minute

Published: July 29, 2010

The value of Canadian wholesale trade unexpectedly slipped 0.1 per cent to $44.1 billion in May from the month before, due to a steep drop in sales of farm supplies, Statistics Canada said July 21.

Market analysts had predicted a 0.5 per cent rise in May. StatsCan revised April’s decline to 0.2 per cent from an initial 0.3 per cent fall.

The agricultural supplies industry fell 29.5 per cent, as wet weather in Western Canada led to lower demand for fertilizer and seeds. Farm supplies fall under the “miscellaneous” wholesale category, which was the only sector out of seven to report a decline in the month.

Read Also

A strip of worked soil in a Prairie field with a seeder and fertilizer farm equipment set up in the background during seeding season.

Precision 4R cuts farm greenhouse gas emissions

Lower areas in your field tend to emit more greenhouse gas, research shows that precision 4R nutrient stewardship practices can help mute the trend

Saskatchewan had the steepest decline among the six provinces that reported a downturn in sales, StatsCan said. It was the Prairie province’s biggest decline in wholesale sales since March 2005.

Earlier this month, the federal Agriculture Department lowered its forecasts for the acreage that farmers will harvest this autumn, as well as the size of their crops, after record spring rains flooded Prairie fields, drowning out young crops or preventing planting altogether.

Excluding the decline in agricultural supplies, wholesale sales activity was up 0.9 per cent.

The Bank of Canada highlighted on Tuesday, after it raised interest rates for a second time in two months, that business investment has not bounced back after shrinking during the recession.

“The decline in sales volumes will act like a piece of dead weight attached to next week’s GDP report,” said Stewart Hall, an economist at HSBC Securities.

Statistics Canada releases May GDP figures July 30.

About the author

Ka Yan Ng

Co-operator Contributor

explore

Stories from our other publications