Every kernels that has been harvest this year is going to want to move.
Farmers will see a better crop this year after a tough year in Canadian agriculture.
The photo was taken by the Canadian Press.
Canada's largest railroad is expecting a surge in grain shipments this year, a sign of hope that this year's harvest will be better than the last one.
Canadian National Railway Co.'s new CEO Tracy Robinson told the Bank of America's transportation conference on May 17 that every harvest is going to want to move.
After a tough year in Canadian agriculture, the CN believes things are starting to look up, and that a more normal grain crop is coming.
Robinson said it would be a good thing for the world. I think we are starting out in a positive way.
As the world faces a food crisis caused by Russia's invasion of Ukraine, there is a shot of optimism. Major spikes in commodity prices have contributed to a troubling burst of inflation because of the conflict in one of the most important regions in the world for grain exports. The United Nations warned last week that prices are likely to stay high for months due to global supply issues.
A farmer is planting durum wheat on his farm.
Dave Bishop has a photo.
Canada's crop won't be enough to alleviate those issues on its own. Even with a bumper crop, the country's agricultural output isn't large enough to make a major impact on global supply, according to Ted Bilyea, a former executive at Maple Leaf Foods Inc.
I don't think it is moving the needle much.
Richard Grey, an agricultural economist at the University of Saskatchewan who helps his son run a family farm in Indian Head, was checking prices for Canola on May 18. He could lock in a price for the harvest and deliver it in November.
Grey said that higher gasoline prices are driving up demand for ethanol and biofuel, which in turn drives up prices for grain and oilseeds.
Statistics Canada reported on May 18 that food inflation is on the rise. The consumer price index found that grocery bills in April shot up 9.7 per cent compared to last year, with bread up 12.2 per cent, cereals up 15 per cent, pasta up 18.6 per cent, and cooking oil up 28.6 per cent.
The Bank of Nova Scotia analyst wrote in a note to investors that high inflation is here to stay.
Canada's crop is expected to be better than last year, but it isn't guaranteed to be good. In the middle of the spring planting season, farmers in the provinces are facing fields so wet that they are struggling to get seed in the ground. It is too dry in southern Alberta.
Tom Steve, general manager with the Alberta Wheat and Barley Commissions, said those that are saying we're poised to have an average crop wouldn't be out of line.
She told the Bank of America conference that she came from a farm in Canada.
Robinson said that the company is preparing for a surge in grain shipments in the last part of the year. The railway has added more than 3000 cars since the beginning of the year.
Robinson said that getting this running is not just about the railroad getting ready.
Grain companies complain that the railways haven't been able to meet demand for railcars despite a 30-per-cent drop in crop yields. The railroads have been facing challenges since late last year, when floods in British Columbia washed out rail lines and caused trains to slow down.
Steve at the Alberta Wheat and Barley Commissions said that their performance was abysmal. They couldn't move the crop that we had. They're telling their investors and shareholders that they're going to do better. We will believe it when we see it.
Email: jedmiston@nationalpost.com
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