Ag Exports Contribute to Widening of Trade Surplus

A turnaround in Canadian agricultural production in 2022 helped to contribute to the widening of Canada's merchandise trade surplus in September. 

A Statistics Canada report Thursday showed Canada's merchandise trade surplus with the world widened to $1.1 billion in September from $550 million in August, as exports increased (+1.3%) and imports declined (-0.4%). Most of the overall increase in exports in September was driven by farm, fishing, and intermediate food products, with shipments increasing 16.7%. 

Exports of wheat, which rose in July before decreasing in August, were up sharply in September, jumping more than 65% in the wake of a much larger harvest in 2022 compared to a year earlier when drought ravaged crops across Western Canada. Exports of canola nearly doubled in September, with higher production beginning to influence shipments as well.