Outlook for the rest of the year is promising despite disruptions.Ottawa—Exports of grains, oilseeds and pulses were 8.1 per cent higher in the first six months of 2020 than during the same period last year, says Farm Credit Canada.It was a notable performance considering “the COVID-19 pandemic triggered a global recession, highlighted by severe supply chain disruptions, including reductions in processing capacity and plant shutdowns.”Producer deliveries during the first half of the year were up 13.5 per cent from the same period in 2019. “Exports are competing with a strong domestic demand.”FCC said in addition to COVID, “Global trade tensions continued to weigh on markets. Under a trade deal with the United States in January, China was to increase its imports of American farm products by 50 per cent relative to 2017 even with recent aggressive purchases of U.S. corn, wheat and sorghum.While Canada-China trade relations remain lukewarm because of unsubstantiated Chinese bans, “a reduction of Indian tariffs on Canadian exports of lentils provided a boost to lentil demand.”FCC said while price forecasts for grains, oilseeds and corn have dropped since January because of demand declines, lentils continue to show upside along with canola and spring wheat “while durum is projected to trend sideways.“The 2020 Canadian wheat except durum production is projected to increase as higher yields will offset the decline in seeded acres. The overall wheat marketplace remains well supplied globally despite downward revisions to production due to weather concerns. Quality will be an important driver for Canadian revenues.“Canadian corn production is projected up 3 per cent as higher yields are expected to offset lower planted acres. Several parts of Ontario and Quebec are drier than normal.“Overall, U.S. corn production is expected to increase over 10 per cent in 2020 with more planted corn-92 million acres or a 2.5 per cent increase over 2019. Timely rains are going to be essential for the U.S. to produce the expected large corn crop. The USDA projects ethanol production to rebound in the second half of 2020, but this is conditional on fuel consumption continuing to climb - a highly uncertain prospect at this time.“The 2020 domestic canola production is projected to increase by 1 per cent as a decline in seeded acres will be offset by higher yields. Conversely, Canadian soybean production is projected to decline with seeded acres estimated to fall 11 per cent in 2020. Canola and soybeans have a different price outlook, mostly based on differences in demand projections. The EU demand for Canadian canola is expected to remain strong, even when considering Ukraine and Australia's potential competition.Pulse prices have improved due to stronger demand and tighter supplies. Canadian lentil production is expected to increase by 14 per cent primarily due to higher seeded acres. Production of dry beans is also forecast to increase in 2020-21 due to higher yields, while the production of dry peas will remain unchanged.Interest rates are expected to remain low into 2022 according to forward guidance by the Bank of Canada. The Canadian dollar gained significant ground against the USD since it reached a low of US$0.69 in March. We expect it to stay below US$0.75 on average for the rest of the year. These financial trends should support profit margins of grain, oilseed and pulse operations.”Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.