Canada's inventories of main grains fell during 2009, official data have revealed, surprising traders who had thought the country would struggle to shift crops at a time of stiff competition for exports.

Wheat stocks in Canada, the second biggest wheat exporting country, were, at 16.1m tonnes, 6.5% lower at the end of December than a year before, falling below the five-year average.

Barley stocks slumped by 11.1% and inventories of oats by 16.6% while, among oilseeds, canola stores shrank by 4.3%.

The declines reflected "farmers harvesting smaller crops", Statistics Canada said.

While Canada produced more wheat and canola than average last year, when a warm autumn allowed crops to make up ground lost over a cold summer, harvests fellow below the bumper levels of 2008.

"Canola supplies were down as a result of a 6.5% production decline in 2009," StatsCan said.

In Chicago, the data were considered "a little friendly for wheat and oats, neutral for canola", Vic Lespinasse, analyst at GrainAnalyst.com, said.

Durum woes 

However, the report offered no consolation for durum, the type of wheat used in making pasta, whose price has been battered by last year's strong harvests both in exporting countries and in North Africa, a big importer.

A 16.5% jump to 5.58m in Canada's durum stocks was a "little negative" for prices, Mr Lespinasse said.

The data came a week after the Canadian Wheat Board, the world's biggest wheat marketer, cut by up to Can$15 a tonne its forecast for returns to farmers selling into its 2009-10 durum pool. Farmers can now expect Can$146-210 a tonne, depending on grade.

"Export price levels for durum have decreased significantly over the past month under pressure from large global supplies," the board said.

Meanwhile, the fall in the euro, which on Friday touched its lowest against the US dollar since may, had "significantly decreased the price that can be achieved on durum sales to European customers", who the board believes will account for over 35% of global imports of the grain in 2009-10.

The board added that durum crops in Northern Africa had "received timely rains, which is positive for their production potential and negative for the new crop 2010 price outlook".