Statistics Canada says total stocks for most crops were down as of July 31st compared with the same period one year earlier. Lower stocks were largely the result of lower total supply for the 2021/2022 crop year, which was because of low production in 2021 caused by drought in Western Canada. 

Jon Driedger is vice-president with LeftField Commodity Research.

"Stocks are down sharply pretty much across the board anywhere from 30 to 50 per cent depending on the crop and just really a reflection of the fact that last year's drought in Western Canada, we really had a yield disaster last year and crops were small and at the end of the crop year. There's not much left and that's basically what StatCan showed us here today."

Driedger commented on the impact the lower inventories will have on farmers this year.

"We will have a larger harvest this year, undoubtedly, until it's in the bin you don't know quite what's out there but the fact that there's so little crop coming into this season means that the increase in the total supply of grains isn't going to be as large. So it keeps some of these balance sheets a little bit on the tighter side."

Because of lower total supply, grain movements decreased for most crops, with year-over-year movements of grain by rail falling roughly 40%. Generally, exports also decreased compared with the same period ending July 31 one year earlier because of constrained supply.