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Port Congestion Shrinks Canada Wheat Crop

30 January 2014

CANADA - Canada is forecasting a much smaller wheat crop next season because it can't move last season's harvest.

A record 37.5 million tonnes was harvested last season, but that is set to fall by as much as a quarter as rail infrastructure struggles to cope with the abundance of grain, reports ABC Rural.

There's speculation Australian grain sellers will pick up extra contracts because of Canada's problems.

Adrian Clancy, from CBH Grain, says a big crop is actually costing Canadian farmers and shipping operators a lot of money.

"They're having real issues getting grain to port, the same sort of issue we had a couple of years ago," he said.

"All up country, they've got a real backlog on their rail. We're seeing big demurrage for shippers as they have boats sitting in harbours for up to two weeks waiting to be loaded.

"It's just due to the fact they have so much grain."

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