Canada’s exports rise in September as wheat volumes rebound

OTTAWA (Reuters) – Canada’s exports rose in September, largely driven by better wheat volumes and prices, while imports were also up, with both import and export values impacted by the depreciation of the Canadian dollar, Statistics Canada said on Thursday.

The country’s trade surplus with the world widened to C$1.14 billion ($827.4 million) in September, below analyst forecasts of a surplus of C$1.34 billion, but up from a downwardly revised C$550 million surplus in August.

Exports rose 1.3% in September and were up 1.7% on a volume basis, though prices fell for the fourth consecutive month, Statscan said. Wheat led the gains, rebounding sharply as this year’s strong harvest began to impact exports.

Energy exports were also up, as higher crude volumes outweighed falling prices.

Imports rose 0.4% but were down 0.8% in volume terms. Pharmaceuticals drove the gain, likely bolstered by newly available updated COVID-19 vaccines.

A large share of Canada’s trade is done in U.S. dollars, which means converted values are higher when the Canadian dollar depreciates against the U.S. dollar, Statscan said.

The Canadian dollar was trading 0.6% lower at 1.3793 to the greenback, or 72.50 U.S. cents, as the greenback rose sharply against a basket of major currencies.

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