(Resource News International) –– A large number of vessels currently loading, or waiting to load, canola at Canada’s West Coast is a sign of the solid demand for the commodity.
That’s according to an export official who expected the pace would remain strong, but said a current backlog at the coast was due in part to the lateness of this year’s harvest and railway delays.
There are currently six boats loading canola at the West Coast and another two vessels waiting their turn, according to the latest report from the Canadian Ports Clearance Association.
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While most of those vessels have only been at the port for a few days, at least one arrived two weeks ago.
Canadian canola has moved to Mexico, Japan, Dubai and China recently, with Pakistan also coming forward as a larger customer, according to Adrian Man of Richardson International in Winnipeg.
Flooding in Pakistan was causing crushers in the country to replace their lost stocks with fresh supplies and more cargoes were expected in the upcoming months. Continued demand from the other major destinations was also expected.
There had been delays moving canola to the coast causing some vessels to wait longer than normal, Man said.
The lateness of this year’s crop and some delays with the railroads were leading to the backlogs, he said, but added that the heavier lineup is normal for this time of year and the movement was starting to smooth out.
Canada exported a total of 7.1 million tonnes of canola in 2009-10, according to Canadian Grain Commission data, and crushed about 4.7 million tonnes domestically.
While canola production was down in 2010-11, Man estimated exports could reach 6.5 million tonnes during the 2010-11 crop year, with domestic crusher demand increasing to 5.5 million tonnes due to the larger domestic capacity.
