Oats, barley, rye, flax and canola had mixed performance. Canola and flaxseeds were down sharply in both periods, barley deliveries were strong while rye and oats were mixed.
The poor harvest forecast for the coming year will be particularly difficult for farmers.
Canadian grain accounted for 72 percent of all grain revenues last year for the two railways with
Doerksen said the bottom line would be about a six percent drop in revenue over the next 12 months for CP and about four percent for
Wheat is forecast to fall 38.3 percent to 21.7 million tonnes due to a 32.6 percent reduction in yields and 8.5 percent less harvested area.
Canola is forecast to decline 34.4 percent to 12.8 million tonnes, the lowest level since 2010.
Barley is expected to fall 33.5 percent to 7.1 million tonnes, as higher harvested area is not expected to offset a 38 percent drop in yields.
Although smaller, the oat and pea crops will be hit even harder, falling 43.6 and 45 percent respectively.
Such low production levels have not been seen for more than a decade, and grain exports will fall by 41 percent, the lowest total since 2006-2007.
The federal government said that 99 percent of all farmland in
CN’s rail network is concentrated in the northern regions of the Prairies where growing conditions were slightly better, while CP is more exposed to the southern regions.
While the drought has also affected
Maize and soybean production is expected to approach record levels. Corn production is forecast to increase 4% to 14.7 billion bushels, while soybeans are forecast to increase 4.9% to 4.34 billion bushels.
CN is more exposed to grain in
“As such, CN appears to be in a better position to
He added that
CN and CP have recognized the challenge posed by the drought, warning investors last month that they are unlikely to repeat the record grain shipments they saw in 2020 as they each carried around 31 million tons.
This report of
Companies in this story: (TSX: CNR, TSX: CP)
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