<article><p class="lead">US corn sales and exports to Canada have reached their highest in recent years this marketing year, reflecting reduced and costlier domestic feed grain supply.</p><p>US corn sales to Canada totalled 258,400t in the last reporting week, to 2 December, bringing outstanding sales awaiting shipment to 1.77mn t, US Department of Agriculture (USDA) data show. This was well above an outstanding volume of 211,500t a year earlier and 332,100t at this point in the 2019-20 marketing year. </p><p>Canada was also the largest buyer of US corn on 26 November-2 December, ahead of Colombia and China, accounting for nearly 23pc of US exports. </p><p>And Canada became the third-largest buyer of US corn so far in 2021-22, behind China and Mexico. </p><p>US corn exports to Canada totalled 119,500t last week, bringing shipments since the start of the marketing season in September to 546,000t, well up on 169,600t at the same time last year and 136,200t two years ago. </p><p>Canada is now the fifth-largest importer of US corn so far this season, behind Mexico, Japan, China and Colombia. Higher purchasing commitments suggest shipments to Canada could in the coming weeks could outpace those to Japan and Colombia. </p><p>Canada stepped up imports of US corn this year as its own production of wheat and barley for animal feed purposes has fallen below long-term averages following exceptionally dry and hot conditions in the summer. The same weather conditions also boosted the protein content of Canada's wheat crop, making it more suitable for milling and less so for animal feed.</p><p>Canadian soft wheat output totalled 19mn t this year, down from 25.84mn t last year and long-term averages, according to government statistics agency StatCan.</p><p>Unfavourable weather also weighed on barley production, which fell to 6.9mn t this year from 10.74mn t in 2020-21, further reducing feed grain availability. </p><p>Meanwhile, falling hog and cattle slaughter rates in British Columbia in recent weeks following heavy rainfall have further raised Canada's feed grain requirements. </p><p class="bylines"><i>By Bilal Muftuoglu</i></p></article>
