Canadian canola stocks fell 20.7% to just 2mn t over the 2015/16 harvest season according to the latest report from StatCan, driven by record domestic crushing and strong export demand. Commercial canola stocks and on farm stocks falling 15.8% and 25.9% respectively. Canadian canola crushing ended the harvest year at a record high, with over 9mn t of canola crushed, leading to 3.92mn t of canola oil being produced.
Exports have also continued to soar throughout the harvest season, climbing 12% YoY to 10.28mn t, with 38% of this destined for China. However, the implementation of stricter standards on Chinese imports of Canadian canola could see the Canadian producers lose access to the main export hub. While plans to drop canola dockage requirements in China from 2.5% to 1% were postponed at the beginning of September, the threat of these new standards could still if implemented reduce Chinese offtake of Canadian canola, which reached 4mn t this harvest season.